Ukraine plans to issue eurobonds for $1.5 bln, raise $2.9 bln from IMF in 2022 – draft state budget-2022

The government borrowing plan for 2022, submitted by the government to the Verkhovna Rada along with the draft state budget, involves the issue of eurobonds with a maturity of 5-15 years for the equivalent of $1.5 billion, or UAH 42.9 billion.

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

In addition, the government plans to raise the equivalent of almost $2.9 billion, or UAH 82.7 billion from the International Monetary Fund, within the framework of external borrowings to finance the deficit of the general fund in 2022, without specifying whether it is a new program, the extended Stand-By Arrangement, or the use of SDR1.93 billion ($2.74 billion) received in August this year under the new SDR allocation.

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

In particular, the government intends to place the longest, ten-year, government domestic loan bonds for UAH 35 billion, seven-year bonds – for almost UAH 36 billion, three-five-year bonds – for UAH 157.1 billion (about UAH 50 billion each year).

The plan for the issue of two-year securities is UAH 85.6 billion, one-year – UAH 66.3 billion and short -, six- and three-month bonds – UAH 22 billion and UAH 18 billion, respectively.

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

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

Source: www.en.interfax.com.ua