January 26, 2005 | Cbonds
|Ukrtelecom will place its bonds worth around 450 mln hryvnias, 12% of which will yield 12% p.a., and the rest – 16% p.a., as announced by Georgiy Dzekon, the company's representative, at a press-conference on Tuesday.|
According to him, currently Ukrtelecom has suspended the loan placement as it plans to tap external debt markets and raise funds (about 1.5 bln hryvnias) at a lower rate by the end of first quarter of 2005.
Dzekon reminded that the company's 3-year bond issue was registered (in May of 2003) in amount of 700 mln hryvnias. “Some part of this amount was placed at 12% p.a. due to the certain economical situation. After the that the market wouldn*t take our bonds at 12%, since our rate on such long debts in hryvnias equaled 18 and 20. By negotiations with banks we worked out a rate acceptable for them: at first it was 18%, but then we talked them into 16%. We made a discount of these bonds, and therefore the weighted average rate on this part of bonds – 16%”, - said CEO of Ukrtelecom.
“At present the market is again refusing to buy them at 16%, demanding a rate rise to 18-19%, but we have suspended placement of these bonds for now”, - Dzekon emphasized.
Based on Credit Rating data