Ukraine announces successful settlement of its new US$1,250,000,000 8-Year Eurobond

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On 30 April 2021, Ukraine announced the successful settlement of its new U.S.$1,250,000,000 Eurobond due 2029 (the “Notes”). The Notes will be admitted to trading on London Stock Exchange’s main market on 4 May 2021. This is an inaugural listing of Ukraine’s sovereign bonds on London Stock Exchange.

The Notes were issued with a yield of 6.875%, receiving bids in excess of USD 3.3bn from 223 investors. The investor base of the new issuance was dominated by asset managers, which accounted for 84% of the notes issued and followed by hedge funds (9%), insurance and pension funds (5%) and banks (2%).

Investors from the United Kingdom, the United States and continental Europe generated the majority of demand in the new Eurobond’s primary offering with 42%, 34% and 21% of allocations, respectively. Investors from Asia and MENA amounted to 3% of the allocations.

The proceeds were transferred to the account of the State Treasury of Ukraine and will be used for general budgetary purposes.

“Despite returning to the fiscal consolidation path, Ukraine's financing needs are still high compared with the previous years. As a part of our debt management strategy, the decision was made  to cover most of those needs from the local market and in national currency. Having successfully implemented this strategy in Q1, we returned to the international capital markets after their stabilization in order to cover part of our FX needs for this year. We are glad that in the less favorable market environment for the emerging economies, markets still remain accommodating for issuers with a track record of prudent fiscal and monetary policies and proactive engagement with the investor community” commented Yuriy Butsa, Government Commissioner for Public Debt Management.

BNP Paribas, Deutsche Bank, Goldman Sachs International and J.P. Morgan acted as Joint Bookrunners.

The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Ukraine does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of these securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

This announcement is not an advertisement of securities in Ukraine, and is not an offer or invitation to, or solicitation of, any such circulation, distribution, placement, sale, purchase or other transfer of the securities in the territory of Ukraine.