Ukraine has issued $1 Billion worth of 5-Year Notes at a stunningly low risk of only 28bps above US Treasuries – much cheaper than the cost of capital in the public markets (and from the IMF) which yield over 10%. Why? The bond is guaranteed by the US Agency for International Development and “assures full repayment of principal and interest” based on the full faith and credit of the US (Taxpayer). The Minister of Finance of Ukraine has the following press releases and pictures posted about the deal filed under Hot News of the Day:
|
Minister of Finance of Ukraine Oleksandr Shlapak and United States Secretary of the Treasury Jacob Lew signed a Declaration of Intent |
|
 |
|
15.04.14 11:47 |
|
Washington, Ukraine and U.S. signed safeguards agreement on borrowing of USD 1 billion |
|
During official visit to Washington, DC, Minister of Finance of Ukraine Oleksandr Shlapak signed a loan guarantee agreement between Ukraine and United States of America… |
|
Along with these pictures:
You can read more about the special deal for the Ukraine on Zero Hedge where there is already a lively discussion going and in the Wall Street Journal with the latter noting:
The maximum yield will be 2.9%, the government said. By contrast, Ukraine’s existing bonds maturing in six years are yielding about 11%, according to Tradeweb. Five-year U.S. Treasurys yield 1.593%, meaning that Ukraine’s U.S.-backed bonds will be cheaper for investors to buy for essentially the same risk. Bond yields move in the opposite direction to prices. Separately the European Union Wednesday also raised 100 million euros ($137 million) from selling bonds, proceeds of which will be lent to Ukraine.
The funds will help the Ukraine to meet pressing bill payments – including the cost of natural gas imports from, you guessed it… Putin’s RUSSIA….
Similar Posts:
- Franklin Templeton’s $7.6bn Bond Bet on the Ukraine is 6X Bigger Than its Russian Bond Holdings (EM)
- The Economic Impact of a Boycott on Russian Fossil Fuels (RaboResearch)
- Russia Consumer Confidence Falls in Latest Nielsen Survey
- Burisma Holdings, Ukraine’s Largest Private Gas Producer, Welcomes Joe Biden’s Son to the Family
- PKO Bank Polski (WSE: PKO / FRA: P9O): Poland’s Largest Bank That Also Owns a Bank in Ukraine
- Gazprombank GPB Hires Former Senators Lott and Breaux to Fight Russia Sanctions (CPI)
- Resolving the SE Ukraine Conflict Would be a “Massive Buy Signal” for Russia (CNBC)
- Ukraine War Poses a Threat to EU Industry (RaboResearch)
- Emerging Market Hedge Fund Assets Rise to a Record Despite Russian Losses (PR)
- Do You Need to Putin-proof Your Portfolio? (FE Trustnet)
- Africans ‘Victims’ of the Ukraine War, AU Head Tells Putin (DW)
- Infographic: Russia’s Sphere of Influence in Context (VOX)
- Investment Implications of the Russian Invasion (Franklin Templeton)
- Russia Moves Up 11 Places in the Global Competitiveness Report (MT)
- Russia Ukraine War’s Global Impact (MetLife Investment Management)
