The Ministry of Finance of Ukraine announces pricing of new Eurobonds

10/26/18

THIS ANNOUNCEMENT IS NOT BEING MADE IN AND COPIES OF IT MAY NOT BE DISTRIBUTED OR SENT INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN.

Ukraine announces the pricing of two new benchmark Eurobonds, the first in a principal amount of $750,000,000 with final maturity on 1 February 2024 and the second in a principal amount of $1,250,000,000 with final maturity on 1 November 2028. The 2024 Notes will bear interest at the rate of 8.994% per annum and the 2028 Notes will bear interest at the rate of 9.750% per annum. The new issues are expected to be rated B- by Standard & Poor’s and B- by Fitch. Settlement of the new issues is expected to take place on 1st of November 2018.

The total indications of interest for the new issues amounted to US$ 4.9 billion across circa 390 investors.

The proceeds of the new issues will be used for general budgetary purposes, as well as to redeem Ukraine’s U.S.$725,000,000 zero coupon debt securities issued on 28 August 2018.

The Acting Minister of Finance of Ukraine, Oksana Markarova, commented: “We are grateful to our international partners, who today again supported our country. In spite of the complicated situation on the international markets for emerging credits, they showed their faith in Ukraine and recognized the reforms made by the Government, the President and the Parliament by participating in our significant bond issuance. We are confident that after adoption of the balanced budget for the year 2019 and the start of the new IMF stand-by program, Ukraine will be in a strong position to fulfill all obligations to our investors and lenders”.

BNP Paribas, Citi, Goldman Sachs International and J.P. Morgan Securities plc acted as Joint Lead Managers on the transaction.

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 represented by the Minister of Finance of Ukraine acting upon instructions of the Cabinet of Ministers of 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 the 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 (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. It is not intended to be and must not be publicly distributed in or into Ukraine.

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