The Ukrainian economy requires additional funds for development more than ever. One such source is foreign borrowings. In this regard, the National Bank of Ukraine (NBU) has streamlined the regulations on payment transactions of Ukrainian companies relating to proprietary debt securities placed abroad to attract foreign funding (Eurobonds).
To simplify terms and conditions and reduce the cost of the international placement of proprietary Eurobonds by Ukrainian companies, the following amendments were introduced: transactions to distribute income on and redeem Eurobonds, as well as other issuer transactions for the purpose of placing such securities, were removed from the list that is subject to a EUR 2 million annual limit; and foreign currency can be bought to be deposited on the own account of the issuer with a Ukrainian bank until the maturity date of liabilities under Eurobonds.
“The Ukrainian economy requires additional funds for development more than ever. One of such sources are foreign borrowings. The regulator observes increasing interest of Ukrainian companies to the possibility to attract foreign funding, including through Eurobond placement,” noted Yuriy Heletiy, NBU Deputy Governor.
In his words, “the amendments approved by the NBU will streamline the terms and conditions for raising funds and increase capital inflows into the Ukrainian economy and promote the country’s investment potential.”
