Ukraine

Emmerson eyes $230m project financing - NCC refis amid deal drought - Deufol cuts margins with loan refi - Ires Reit activates acquisition accordion - Ukraine's Kronospan receives EBRD-led loan, but MHP funding remains uncertain

Ukraine set the terms on its €1bn seven year bond on Thursday afternoon, taking advantage of a huge bid for CEE euro sovereign deals this week and a rally in the country’s own debt since president Volodymyr Zelensky was elected at the end of April.

Ukraine has released initial price guidance for a euro deal that the country has been waiting to print since before Volodymyr Zelensky’s presidential victory in April.

Ukraine has mandated banks for a seven year euro-denominated benchmark bond, with the sovereign due to meet investors after a sharp rally in its bonds.

Ukrainian wood processor Kronospan has secured a €116m loan from the EBRD and commercial lenders. The deal adds light to a desolate market, though a loan for Ukrainian borrower MHP may be at risk due to competition concerns.

Ukraine will have to wait until after its snap parliamentary elections to arrange its next disbursement from the IMF, but the country will rely on the domestic market to meet its refinancing needs.

Ukraine might be angling for an opportunity to issue a Eurobond, but with a new president-elect unsettling capital markets and IMF relations best described as frosty, investors would rather the sovereign held off.

Volodymyr Zelensky's victory in Ukraine's presidential elections last weekend is unlikely to be a catalyst for a burst of corporate or sovereign loan issuance, according to international lenders. Although financing requirements are to remain high, borrowers are expected to focus on bonds and supranationals.

A softening in Ukrainian bond spreads may prompt the country's debt management officials to drag their feet over issuing its next public bond. It would be better for them to get moving.

DCM bankers are expecting a sovereign bond from Ukraine imminently, after Vladimir Zelensky, a 41 year old Russian-speaking comedian, won the country's presidential election on Sunday.

The issuance of two currency-linked notes on the private market should help stimulate local currency markets in Myanmar and Ukraine according to one syndicate banker.

Ukraine drew attention for all the wrong reasons this week, tapping a November 2028 line for $350m, allegedly well below the market value.