Ukraine working with Rothschild on funding strategy; Eurobond banks mandated

25 July 2017
Rothschild is advising the Ukrainian government on its long-term funding strategy, according to two sources close to the situation and a person briefed on the matter. The government has also recently mandated three banks for its upcoming Eurobond issue, according to the first two sources.
 
Goldman Sachs, JPMorgan and BNP Paribas will lead the country’s Eurobond, the same two sources said. The tender for the issuance was announced in February and the deal was planned either for the end of this year or early 2018.
 
Rothschild has already begun sounding the market for the deal, which might come in September and which will likely be USD 1bn+ in size, one of the sources close said. Rothschild won its mandate via an open tender, according to the source.
 
In November 2015, Ukraine restructured USD 15bn of its external debt, exchanging it for new paper maturing 2019-2027, as reported. Lazard advised the government on that transaction.
 
The country is facing USD 2.6bn and USD 3.9bn of debt repayment in 2017 and 2018, respectively, which it can cover from donor funds, according to an S&P Global rating agency press release from May. But in 2019, Ukraine will face a chunkier repayment of USD 7.5bn, mostly comprising Eurobonds. The government was aiming to place new notes ahead of that maturity, as reported.
 
Goldman Sachs, JPMorgan, BNP Paribas and Rothschild did not return requests for comment.
 
Ukraine is rated ‘B-‘ by Fitch and S&P, and ‘Caa3’ Moody’s.
 
by Alesia Sidliarevich and David Graves