Kharkiv in August placed three-year E series domestic bonds for UAH 250 million maturing in 2022, Fitch Ratings has reported.
According to the report, the agency assigned the bonds a priority unsecured rating of “B.”
“This is the first tranche of a UAH 1 billion bond to be placed in 2019-2020. Another UAH 250 million tranche is planned for November 2019,” the agency’s report says.
The interest rate is 18% per annum, income is paid quarterly.
According to the decision of Kharkiv City Council of June 19, 2019, bonds worth UAH 1 billion of E, F, G, H series for UAH 250 million each are to be placed within two years.
E series bonds will mature on August 24, 2022, F series on November 23, 2022, G series on February 22, 2023, and H series on May 24, 2023.
“The purpose of the loan is to raise funds to finance the budget deficit for the development of the city of Kharkiv, including the construction and reconstruction of social and cultural facilities, transport infrastructure, roads and engineering facilities,” the decision reads.
