OREANDA-NEWS. October 22, 2009. the Finance Ministry of Ukraine was placed local bonds at the average coupon rate of 27%, which is an increase of 400b.p. In particular, 8-months local bonds had been placed at 27% (up 400b.p.), 11-months bonds at 27.5% (up 550b.p.), and 2.5-year bonds at 27% (up 240b.p.).

Millennium Capital sees that the increase in the coupon rate was related to the fact that the government needs additional funds in order to redeem the previous bond issues (issued on October 28 to the tune of UAH 658mn). Millennium Capital believes this decision is reasonable, since an insufficient flow revenues to the State Budget make sovereign bond quite a risky asset, which makes it imperative that the coupon rate on these bonds be brought closer to the average market coupon rate.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of tickets selling for its flights due to high arrearage to the creditors of the company.