Loan Guarantee Agreement signed

Обзор облигаций 19.05.2015 Yesterday, along with US Ambassador to Ukraine Geoffrey R. Pyatt and Director of the USAID Mission Jed Barton, the MoF reported that Ukraine's Minister of Finance Natalie Jaresko signed the loan agreement guaranteeing US$1.0bn of principal and coupon payments on a new Eurobonds issue which Ukraine most likely will issue very soon. Investment implications: Although this guarantee was set to take effect at the end of April for one month, the agreement had to be signed prior to the Eurobond offering. As it was signed yesterday, the Eurobond could be issued this week or by the end of this month, with a maturity at the same 5-year as last year's offering. We do not anticipate a significant spread to the benchmark, possibly at 25-30bp for a 5-year bond.