Business news from Ukraine

Business news from Ukraine

UKRAINIAN KERNEL PLACES $300 MLN EUROBONDS

Kernel, one of the largest Ukrainian agricultural groups, has placed $300 million eurobonds with a coupon rate of 6.5% and maturity in 2024, one of the market participants has told Interfax-Ukraine.
According to him, the pricing was set at 6.625%, the securities were sold at a price of 99.475% of the face value.
The organizers of the placement were ING Bank, JP Morgan.
The company did not comment on this information to the agency, saying that the details were planned to be released on October 17.
As reported, in January 2017 Kernel placed eurobonds worth $500 million. The maturity date of Kernel’s debut eurobonds was January 31, 2022, and the coupon rate was set at 8.75% per annum.
Kernel is the world’s largest producer and exporter of sunflower oil, the leading producer and supplier of agricultural products from the Black Sea region to world markets.

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LOW COST AIRLINE RYANAIR PLANS TO INCREASE PASSENGER TRAFFIC ON UKRAINIAN FLIGHTS BY 33%

The Irish low cost airline Ryanair (Dublin) intends to carry more than 2.1 million passengers on Ukrainian flights in 2020, which is 33% more than in 2019.
This was announced by Ryanair Chief Commercial Officer David O’Brien at a briefing with Infrastructure Minister Vladyslav Krykliy in Kyiv.
According to him, in 2020 Ryanair plans to open 18 routes in Ukraine, two of which are new from Lviv to Budapest and from Kharkiv to Warsaw (twice a week). In 2020, the company will operate 43 routes from Ukraine.
Ryanair entered the Ukrainian market in 2018. The first months the low cost carrier operated flights from Boryspil and Lviv airports. In June 2019, the airline began flights from Kharkiv and Odesa.
Ryanair daily operates over 2,400 flights to/from 200 airports located in 37 countries. Last fiscal year, the company transported 130.3 million people. Its fleet has 460 Boeing-737 aircraft.

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IRISH LOW COST AIRLINE RYANAIR LAUNCHES FLIGHTS FROM KHERSON TO KRAKOW

The Irish low cost airline Ryanair (Dublin) launches direct flights from Kherson to Krakow on December 21, 2019.
Flights will be operated twice a week, Infrastructure Minister Vladyslav Krykliy said during a briefing after meeting with Ryanair Chief Commercial Officer David O’Brien in Kyiv.
Ryanair entered the Ukrainian market in 2018. The first months the low cost carrier operated flights from Boryspil and Lviv airports. In June 2019, the airline began flights from Kharkiv and Odesa.
As reported, Ryanair from April 2020 will begin to fly on the Lviv-Budapest route.
Ryanair daily operates over 2,400 flights to/from 200 airports located in 37 countries. Last fiscal year, the company transported 130.3 million people. Its fleet has 460 Boeing-737 aircraft.

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BUDGET OF UKRAINIAN STATE FINANCES 163 ORGAN TRANSPLANTATIONS ABROAD IN 2018

In 2018, a budget of Ukrainian state financed 163 transplantations of organs abroad and 110 transplantations of bone marrow performed to the Ukrainian patients.
This data was presented by Oksana Dmytriyeva, Chairwoman of the Subcommittee on Transplantation and Modern Medical Technologies of the Parliamentary Committee on National Health, Medical Care and Health Insurance during a roundtable on October 8.
She said that UAH 600 million were allocated for such kind of operations in 2018.
“If the transplant system in Ukraine worked in a proper way, several thousands people could be treated for these means,” she said.
According to Dmytriyeva, nearly 5,000 persons annually seek for transplantation of organs for health reasons, however just 130 transplantations are performed in a year. Though, Ukraine is one of the last in Europe according to death donorship.
For her part, Health Minister Zoryana Skaletska said that it was a necessity in additional financing of the patients, who long for transplantation abroad since the funds provided for 2019 have already been spent.
Besides, Skaletska said that there was a need for more efficient use of public resources, including through the development of domestic transplantology.
As head of the bone marrow transplantation and intensive chemotherapy and immunotherapy department at the Okhmatdyt hospital, Oleksandr Lysytsia reported, today bone marrow transplantation from an unrelated donor was carried out only abroad. At the same time, performing of such operations in Ukraine would make it possible to reduce their cost by more than 30%.
As reported, the Cabinet of Ministers of Ukraine in its program determined setting of the conditions for the development of transplantation in the country as one of the priority tasks, which would allow at least 30% of Ukrainian patients, who had previously received transplantation services abroad, to receive them at home.
The state budget of 2019 raised UAH 689.9 million for the program “Treatment of Ukrainian Citizens Abroad”, of which UAH 608 million has already been allocated for treatment.

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STARTUP FROM UKRAINE RAISES $90 MLN OF INVESTMENT

IT company with Ukrainian roots Grammarly has raised a $90 million investment led by General Catalyst, which also led its investment round in 2017 with $110 million, with participation from other existing investors including IVP, and new investors, the company has said in a press release.
Since the first round of investments in May 2017, Grammarly has more than tripled the number of users and has added a number of updates to its product, which, according to a press release, “helps more than 20 million people every day.”
The company also opened its fourth office in Vancouver, British Columbia (Canada) and doubled the number of team members in offices of Kyiv, New York and San Francisco. It plans in the near future to expand the current office space in Kyiv by additional 1,300 square meters where 130 people can work.
According to the report, the funds raised by Grammarly will be aimed at further expanding the company’s product coverage in order to make it available wherever written communication in English can be used. The company will also continue working on more complex aspects of language and communication, in particular on the development of the recently launched tone detector, to provide users with practical advice on how to adapt it.
Grammarly was founded by Kyiv residents in 2009: Max Lytvyn, Alex Shevchenko and Dmytro Lider. The offices of the company are located in Kyiv, San Francisco, New York and Vancouver.

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UKRAINIAN PRESIDENT: WE COULD PRESENT GAMBLING LICENSE WITH PROSPECT OF BUILDING NEW HOTEL

Ukrainian President Volodymyr Zelensky has not ruled out that gambling licenses could be issued if there is a prospect for building a new hotel or the licenses could be issued at a lower price if a hotel expands the number of rooms. “We have five-star hotels on the market, but they are very small. So far there is no way to make a casino there. We need a test… We want hotels to be built. Perhaps if, for example, it is a boutique hotel, then maybe we will give them licenses, which should cost a little more,” Zelensky said during a press marathon on Thursday.
“If this is a very big brand hotel, we can give a license, while they build a hotel for us,” he added.
The president also said that the proceeds from the sale of licenses should go to sports, medicine or education.
As reported, the Cabinet of Ministers has prepared a bill on the legalization of gambling business, which regulates lotteries, bookmakers, poker, casinos and slot machines. At the same time, the government plans to create a special body – a commission for the development and regulation of gambling, which should be coordinated by the government. At the same time, an online gambling equipment supervision system is provided on the basis of the State Tax Service. At the same time, the bill provides for the identification of players by passport data and identification code.

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