Ukraine Abandons Eurobonds Sale
OREANDA-NEWS. July 19, 2010. The Ukrainian government has canceled the Eurobond issue for a total value of USD 2 bln, the Ministry of Finance announced July 15.
Millennium Capital sees this news as negative for sovereign and positive for VAT bonds. A high yield of about 8.5% coupled with an adequate liquidity underpinned by the IMF loan appears to be the principal reason for cancelling the issue. Meanwhile, this step will affect the VAT bonds and OVDP, for which investors will demand higher yields based on the benchmark for sovereigns at 8.5%.