The Ukrainian government has instructed the Finance Ministry to attract two loans from Cargill Financial Services International: EUR100 million for two years at a 5.15% per annum and EUR150 million for five years at 6.25% per annum.
According to the decree of the Cabinet № 651, dated 10 July, published in the newspaper “Uryadovy courier” on Friday, interest income will be paid quarterly.
The document notes that public external borrowing carried out in the framework of the law on the state budget-2019, other parts missing.
As reported, Ukraine in mid-June this year placed in the external market borrowings issue 7-year Eurobonds at EUR1 billion of 6.75% per annum. It was the first for the last 15 years the issue of sovereign issue of the Ukrainian Eurobonds in euros. Demand exceeded supply by 6 times.
According to the Finance Ministry, investors from the United Kingdom, USA, Germany and other European Union countries bought the majority of Eurobonds: they accounted for 32%, 27%, 17% and 13%, respectively. Investors from Switzerland has bought 7% of the issue, while the share of Asian investors amounted to 4%.
Eurobonds were mostly placed among the funds that manage the assets of pension and insurance funds (85%). The proportion of hedge funds accounted for 10% of investment, whereas the share of banks and individual investors amounted to 2%. Sovereign investment funds amounted to 3% of investors in the Ukrainian state Eurobonds.