Ukraine has started to place $1 billion in five-year eurobonds guaranteed by the United States, a banking sector source has told Interfax.
The organizers are Citi, JP Morgan and Morgan Stanley. Pricing is expected shortly, the source said.
Ukraine placed the first issue of bonds worth $1 billion under U.S. guarantees in May last year. Their yield exceeded that of U.S. treasuries maturing on April 30, 2019 by 28 basis points. The organizers were JP Morgan and Morgan Stanley.
Ukraine and the United States signed a security agreement for another $1 billion in Kyiv on May 18. Guarantees provide the borrower's 100% repayment of the loan principal and interest accrued thereon