The Government has set terms for the issue of bonds amounting 1 billion US dollars with the loan warrants of the USA

9/22/16

The Government of Ukraine has entrusted Minister of Finance Oleksandr Danuliuk to attract a loan on the international market. State bonds will be issued in the amount of 1 billion US dollars. The maturity term is 5 years with the interest rate of 1.471% p.a.

This was decided in accordance to the Loan Warrant Agreement between Ukraine and the USA signed on June 3, 2016.

This assistance from the USA confirms the progress of the reforms in Ukraine. Providing this warrant, the USA acknowledges that Ukraine fulfills its obligations including the launch of electronic declarations for public officials.

1 billion US dollars which are planned to be received through the foreign bonds of Ukraine with the loan warrant of the USA shall be used to cover the state budget costs including social welfare, pensions and other guaranteed expenses of the state budget.

Additional information:
- this loan warrant agreement is a part of bi- and multilateral support for Ukraine which also includes the four-year Extended Funding Facility of the IMF and reflects the enhanced support for the economic reforms pursued by the Government of Ukraine. This assistance is aimed to support the economic reforms in Ukraine which are also supported by the IMF, the USA, USAID and other members of the international community as well as to provide Ukraine access to the international capital market;
- this is already the third agreement of this kind with the USA. The previous two agreements in 2015 and 2014 also amounted 1 billion US dollars each;
- this success is the result of the hard efforts of the Ministry of Finance and all state authorities of Ukraine.

Key facts:
- Eurobonds equal to 1 billion US dollars are issued for the international capital market;
- maturity term – 5 years (in 2021);
- record low interest rate in the history of Ukraine for its Eurobonds which is predicted at the level not exceeding 2% p.a.

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