Ukraine will sell $1 billion worth of Eurobonds that mature in 2014 to refinance part of a $2 billion loan from Russia’s second-biggest lender VTB Group.
The bonds will have an annual coupon of 7.95 percent, the Kiev-based Cabinet said on its website today.
The Eastern European nation received a $2 billion six-month loan from VTB Group in 2010 and extended it three times. The loan had interest rate of 6.7 percent. Another $1 billion was repaid to VTB in June, according to the country’s Finance Ministry. Ukraine seeks to keep its budget deficit at 1.7 percent of gross domestic product this year.
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