OREANDA-NEWS. July 08, 2010. Ukraine intends to issue Sovereign Eurobonds worth USD  2bn in July, the Ministry of Finance announced July 7.  The bonds are expected to be long-term and mature in 2020.

Millennium Capital sees this news as positive for the sovereign. Despite the doubts concerning the possible Eurobonds issue by the government, the latter has eventually announced the terms and set on a road show starting July 7. Despite the huge volume of USD 2bn announced and a low current YTM of sovereigns (6-7%), Millennium Capital expects the entire issue to be placed with only a slight increase in yield thanks to a timely rating upgrade by Fitch as well as the recent decision of IMF to resume cooperation with the Ukrainian government.