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