Bonds: New CAD200m loan approved

Обзор облигаций 16.09.2014 The Ukrainian Cabinet of Ministers approved the issuance of a new CAD200m loan at a 3% interest rate with a 0.3% fee. This loan will be likely the debut of the Ukrainian government borrowing in Canadian dollars. Investment implications: This loan likely will be issued by state-owned or government-operated banks as the interest rate is significantly below Ukrainian Eurobond quotes. While the Canadian bond yield curve is very similar to US Treasury yields, this loan's interest rate is significantly higher than current yields on Canadian bonds, which are at about 1.75% now.