Kyiv Pays USD 8,6 mln Coupon on Its Eurobonds
OREANDA-NEWS. July 07, 2010. Kyiv city has paid out coupon of USD 8.6mn on the Eurobonds of the 2004 issue, its representative announced July 6.
Millennium Capital sees this news as positive both for Municipal and Sovereign Eurobonds. Kyiv Eurobonds have recently been a point of investors’ concerns due to a poor municipal budget performance and a potential restructuring of Kyiv external debt maturing in 2011. As of now, the city has partially mitigated those concerns by paying out the coupon on schedule. However, Millennium Capital: believes the risk is still in place due to the poor revenue collection of the capital. With respect to the sovereign the timely coupon payment of Kyiv city Eurobonds was meant to prop up investors’ confidence in the new issue of sovereign Eurobonds scheduled for July.