Ukraine makes triumphant bond return after 15 year hiatus

Published: July 1, 2019

Ukraine made a storming return to the euro denominated Eurobond market in June after 15 years away, as investors warmed to the newly elected president Volodymyr Zelensky.

The B-/B- rated sovereign placed a €1bn seven-year bond. Ukraine started marketing the deal at 7.125% before drawing the yield in to 6.75% during the execution. BNP Paribas and Goldman Sachs ran the transaction. 

The deal is “a sign of continued investor support in Ukraine’s development and integration into the European market”, said Ukraine’s minister of finance Oksana Markarova, in a statement. “We hope that this transaction will be the first step in continuing Ukraine’s fruitful integration into the European financial markets.”

Ukraine has been waiting to print new international debt since ex-comedian Zelensky swooped to presidential victory in April this year. 

In a case of art almost mirroring life, Zelenski became famous in his home country by playing the part of a teacher who accidentally becomes president. 

Ukraine got a widely positive response from the bond market, with demand for its new 2026 debt peaking at €6bn.

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