Kyiv may place longer eurobonds for redeeming $550 m in bonds maturing in 2015-2016

The city of Kyiv is considering the placement of $700 million worth of long-term eurobonds, which will provide the opportunity to redeem $550 million worth of Eurobonds maturing in 2015 and 2016, the deputy head of the city's state administration, Ruslan Kramarenko, said during an interview with Interfax.

"We are considering the possibility of optimizing our debt. Financial analysts suggest we 'repack' our debt on eurobonds maturing in 2015 and 2016 into longer ones with cheaper rates. We are consulting now. The will of the government and the Finance Ministry is also necessary here," Kramarenko said.

"We want to 'repack' foreign and domestic loans and domestic debt. We have the idea, instead of $550 million in eurobonds maturing in 2015 and 2016, of placing $700 million worth of bonds maturing in 2024, and putting the difference of $150 million toward the redemption of the hryvnia-denominated bonds. With this in forex, the rate could remain 8%-9%, but in hryvnia it will be a smaller amount of debt and a rate of 12%-13%, he said.

According to Kramarenko, Kyiv's overall budget debt amounts to UAH 10.54 billion ($1.319 billion), of which $550 is Eurobonds and the rest domestic loans. UAH 1.351 billion will be spent servicing debt this year.