OREANDA-NEWS. September 24, 2012. September 19th, the Ministry of Finance announced pricing USD 600 million Eurobonds with 9.25% coupon and 2017 maturity.

The tap was executed followed an opportunistic approach via a remarkably seamless intra-day execution capturing a favorable issuance window.

In order to capture the full focus from the onset of European and U.S. accounts the transaction was announced to the market at 1:30pm U.K. time / 8:30am EST. The strategy was to release price guidance at 107.125% area (7.46% area yield) to the market while not defining ultimate size of the tap in order for the borrower to retain full flexibility on such.

The transaction received immediate investor interest. The orderbook continued to gain rapid momentum, and, On the heels of significant demand with approximately USD1.4bn in orders from over 80 top quality international accounts the book went subject at 4:40pm U.K. and time and ultimately launched and priced as USD600m at 107.125% / 7.461% yield.
With high demand, final high quality orderbook of the tap demonstrated great level of granularity and geographical diversification from high quality international investor community, with U.S. and European fund managers in particular demonstrating leadership in the trade, driving much of the momentum at the early stages of the bookbuild

The USD600m reopening increased the original volume raised by around 30%, bringing the overall size of Ukraine 9.25% 2017’s to USD2.6bn, marking this as the largest Eurobond transaction ever issued by Ukraine (including multi-tranche prints). Reoffer yield has been 7.461%.

Transaction lead manager has been an investment bank syndicate of JP Morgan, Morgan Stanley, VTB Capital PLC and Sberbank of Russia represented by Troika Dialog investment company.