Ukraine to issue $1bn 2-year Eurobond

KIEV: Ukraine, which in June agreed to refinance half of a $2 billion loan from Russia's VTB Bank through a Eurobond placement, will issue a two-year $1 billion bond issue with a coupon of 7.95 percent, the government said on Monday.

The government has earlier said the Russian lender would receive bonds with the same maturity and yield. Ukraine has repaid the other half of the loan.

The former Soviet republic sold its largest Eurobond of the last 12 years -- $2 billion -- on July 17 at a yield of 9.25 percent, the highest cost of funds in the same period.

The government has said the July issue would help it meet its external funding requirements throughout this year.