Dragon Capital Acts as Joint Lead Manager and Joint Bookrunner on a US$ 700m Debut Sovereign Guaranteed Issue of Ukravtodor

Dragon Capital and J.P. Morgan acted as Joint Lead Managers and Joint Bookrunners for the debut issuance of the State Road Agency of Ukraine (Ukravtodor).  

The orderbook reached a peak of ca. US$ 2.4 bn (over 3x oversubscription) and benefited from orders from over 140 investors. Most investors represented large asset management funds (77%), hedge funds accounted for 17%, while remaining orders came from banks, brokers and other institutions. Geographic distribution of investors was dominated by UK (41%), US (28%) and continental Europe (28%).

As a result, Ukravtodor managed to issue US$ 700m 6.25% notes due 2028.

Strong demand from investors on the back of favourable market conditions and successful work of the issuer, guarantor and joint lead managers allowed the issuer to achieve a record low coupon rate for a USD-denominated Ukrainian sovereign or quasi-sovereign Eurobond. This was also a much tighter premium to a sovereign curve compared to previous sovereign guaranteed issues out of Ukraine (45-50 bps).

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