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Ukraine plans to issue $ 1.5 billion Eurobonds and raise $ 2.9 billion from IMF in 2022

By on September 17, 2021 0

The government’s borrowing plan for 2022, submitted by the government to the Verkhovna Rada along with the state budget proposal, provides for the issuance of Eurobonds with a maturity of 5 to 15 years for the equivalent. of $ 1.5 billion, or 42.9 billion UAH.

According to the document, the weighted average interest rate on them is around 7.5%.

In addition, the government plans to raise the equivalent of nearly $ 2.9 billion, or UAH 82.7 billion, from the International Monetary Fund, in the context of external borrowing to finance the deficit of the general fund in 2022, without specifying whether it is a new program. , the extended standby arrangement, or the use of 1.93 billion SDR ($ 2.74 billion) received in August of this year under the new SDR allocation.

In total, due to external borrowing, it is expected to attract 125.62 billion UAH to finance the state budget, at the expense of internal borrowing – 419.96 billion UAH.

In particular, the government intends to place the longest, ten-year national debt bonds for UAH 35 billion, seven-year bonds – for nearly UAH 36 billion, long-term bonds. three five years – for 157.1 billion UAH (about 50 UAH billion annually).

The two-year bond issuance plan is 85.6 billion UAH, one year – 66.3 billion UAH and short, six and three month bonds – 22 billion UAH and 18 billion UAH, respectively.

Payments for the repayment of external debt next year, according to the government, will amount to 72.4 billion UAH, internal – 321 billion UAH, for service – 181.4 billion UAH.

As reported, Ukraine placed new Eurobonds for $ 1.25 billion at the end of April this year with a maturity of 2029 and a rate of 6.875% per annum. In the second half of July, Ukraine added $ 500 million of these 6.30% securities.