Thursday, September 29 2016 20:21 EEST
Ukraine's Finance Minister: Ukraine raised $1 billion from the eurobonds placement procedure against U.S. guarantees at the lowest rate in Ukraine's history
Ukraine, Finance Minister, 1 billion, eurobonds placement procedure, U.S. guarantees, International Monetary Fund, tranche, currency,  lowest rate, economy, banks

Ukraine's Finance Minister Oleksandr Danyliuk announced arrival of one billion dollars in Ukraine's account from the issue of eurobonds against U.S. guarantees" he wrote on Facebook on Thursday, September 29. has been transferred to Ukraine's accounts.

"One billion dollars from the issue of eurobonds against U.S. guarantees has arrived in Ukraine's account," he wrote on Facebook on Thursday, September 29. 

Ukraine on September 22 placed eurobonds worth $1 billion against U.S. government guarantees at the lowest rate in Ukraine's history, set at 1.471% per annum. Getting the loan guarantees from the U.S. government became possible after a positive decision by Ukraine's key lender, the International Monetary Fund, on further cooperation and the allocation of the third tranche under the four-year Extended Fund Facility program in the amount of $1 billion. 

The funds to the tune of $1 billion to be raised through the issue of bonds against U.S. loan guarantees will be channeled into the state budget's general fund and spent on social security. This is the third loan warranty received by Ukraine from the United States. The previous two warranties granted in 2014 and 2015 enabled Ukraine to obtain $2 billion in total on the international capital market at a record low-interest rate.

A eurobond is a bond issued in a particular currency, such as euros or dollars, and sold to investors in markets other than the one using the currency of the bond issue. For example, eurobonds in U.S. dollars cannot be a issued in the U.S. Eurobonds allow issuers to offer bonds in different countries, based on the regulatory climate, economy, value of the currency and other factors. Eurobonds make up a large part of the international bond market and tend to have high liquidity. 

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