July 30, 2003 |
|The city of Kiev may borrow $50 million more on the world markets by the end of the year, capitalising on the successful placement of its debut $150 million international bonds, a city official said on Wednesday. |
Ukraine's capital became the first city in the former Soviet Union to tap the world bond markets when it launched the five-year paper with a coupon of 8.75 percent on Tuesday. "It was our first experience and it gives us confidence for the future. Everything was very successful. The coupon is lower than we had expected," Oleksander Prokopenko, deputy head of the financial department in Kiev's city administration, told Reuters.
"If there are good conditions, we may borrow another $50 million," he said.
Dresdner Kleinwort Wasserstein, JP Morgan and UBS Warburg were the lead managers of the issue.
International rating agencies Standard and Poor's assigned a B rating to Kiev's paper. The agency said the rating was constrained by Kiev's relatively low revenue and expenditure flexibility and significant infrastructure needs.
Prokopenko said the city authorities expected to receive the funds on August 8 and would channel them to develop the transport sector and to support the arts.
Kiev's international bonds follow the successful placement of Ukraine's 10-year sovereign Eurobonds worth $800 million
The government plans an additional issue of its 2013 paper by the end of the year to raise funds for grain imports after parliament voted in favour of borrowing just over $100 million