Government orders Finance Ministry to attract financial advisor to place eurobonds

"With the necessity of entering international capital markets there is a need in attracting financial advisors. I ask to confirm our proposal to attract the financial advisor and order us to take the required measures and select the advisor," Deputy Finance Minister Serhiy Marchenko said at the meeting. The government approved the proposal. As reported, Finance Minister Oleksandr Danyliuk at a press conference on February 6 confirmed Ukraine's plans to enter the foreign capital market in 2017. Danyliuk said Ukraine would seek to raise around $500 million. At the same time, he said no final decision has been taken. Ukraine from 2014 through 2016 annually placed five-year eurobonds guaranteed by $1 billion by the U.S. government. Redemption rates in 2016 were 1.471%. The last time Ukraine placed a bond issue on commercial terms was in 2013: 10-year dollar-denominated eurobonds for $1.25 billion at a 7.5% annual interest rate. The program for managing state debt in 2017 approved by the Finance Ministry on January 31 foresees borrowing UAH 103.907 billion on the domestic market or 54.5% of total borrowing and UAH 86.89 billion on foreign markets or 45.5%, including UAH 16 billion for the special fund from international financial institutions (IFIs). The Finance Ministry predicts that in 2017 the share of state external debt as a portion of total state debt will amount to 66.3%.