OREANDA-NEWS. February 08, 2011. Ukreximbank in a land mark transaction issued UAH 2,385,050,000 dollar settled 3 year Euroclearable Notes at 11%, reported the press-centre of Ukreximbank.

The transaction represents a historical first being the first transaction whereby a Ukrainian borrower has accessed the international financial markets directly for hryvna financing in a public transaction.

It is significant that the deal has a final maturity of three years as it represents an important step forward in building a Ukrainian yield curve and satisfying the Ukraine corporate sector’s demand for long term funding in hryvna. The transaction size (USD 300mio equivalent) and the appointment of three leading investment banks as book runners (Credit Suisse (Global Coordinator), Citi and Deutsche bank) to ensure secondary market liquidity underlines the objective of Ukreximbank to create a benchmark bond for Ukraine borrowers in the international financial market and facilitate access to the international markets for long term hryvna for other high quality Ukrainian borrowers.

The issue saw significant demand with total orders in excess of USD 400 mio equivalent for the USD 300 mio equivalent transaction. In excess of 90% of the deal was distributed to international real money accounts primarily from London and offshore US accounts, supported by additional retail demand out of Switzerland and other European countries.

The transaction confirms Ukraine’s remarkable recovery since the international financial crisis, providing a ringing endorsement by international investors of Ukraine’s economic prospects, the Ukraine government’s reforms and the positive impact of the IMF program in Ukraine.