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Ukraine Announces the Successful Settlement of Its New 12-Year U.S.$-Denominated Eurobond and the Completion of the Switch Tender Offer for Its 2021 and 2022 Notes

NOT FOR PUBLIC RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION

On 30 July 2020, Ukraine announced the successful settlement of its new U.S.$2,000,000,000 7.253% Eurobond due 2033 (the “Notes”), as well as the completion of the switch tender offer in relation to its outstanding U.S.$-denominated 7.75% senior notes due 2021 and U.S.$-denominated 7.75% senior notes due 2022. The Notes have been admitted to trading on the regulated market of Euronext Dublin.

Following the completion of the switch tender offer, the total aggregate amount of U.S.$-denominated 7.75% senior notes due 2021 still outstanding is U.S.$ 974,146,000 and the total aggregate amount of the U.S.$-denominated 7.75% senior notes due 2022 still outstanding is U.S.$ 1,013,354,000.

With this transaction, Ukraine increased its average debt maturity and contributed to building a smooth state debt repayment profile.

“This is a challenging year for EM issuers, as all countries face the need to finance much wider deficits than initially envisaged. Despite that, we managed not only to return to the market after ensuring a sufficient amount of concessional financing to cover Ukraine’s deficit but also proactively tackle the upcoming maturities to decrease the refinancing risks for the coming years. We are aiming to continue the implementation of our Medium-Term Debt Management Strategy, with a proactive approach to debt management being a key component”, said Yuriy Butsa, Government Commissioner for Public Debt Management.

The investor base of the full deal was dominated by asset managers, which accounted for 81% of the notes issued and tendered, followed by hedge funds (13%), banks (4%) and insurance and pension funds (2%).

Investors from the United States, the United Kingdom and Continental Europe have generated the majority of demand in the new Eurobond’s primary offering, with 48%, 38% and 13% of allocations, respectively.

The total indications of interest for the new issue and tender offer peaked in excess of U.S.$7 billion from over 200 investors globally.

Goldman Sachs International and J.P. Morgan acted as Joint Lead Managers and Joint Dealer-Managers on the transaction.

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The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Ukraine does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.

This communication does not constitute an offer of the Securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the Securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

This announcement is not an advertisement of securities in Ukraine and is not an offer or invitation to, or solicitation of, any such circulation, distribution, placement, sale, purchase, or other transfer of the securities in the territory of Ukraine. It is not intended to be and must not be publicly distributed in or into Ukraine.