Ukraine: Cabinet dismissals hit Eurobond issue
Ukrainian president Viktor Yushchenko's announcement on September 8 that he had sacked his entire cabinet, including prime minister Yulia Tymoshenko, could hardly have come at a worse time for the investment banks appointed to arrange the sovereign's latest Eurobond issue.
Citigroup, Deutsche Bank and UBS have been mandated as joint bookrunners on its planned €600 million denominated 10-year issue, and had planned to hold a roadshow during the week of September 12. This was swiftly put on hold. The issue will be Ukraine's first denominated in euros since a restructuring of its debt in 2000 after the Russian financial crisis of August 1998.
The City of Kiev and state-owned Ukreximbank also plan issues in the third quarter. Ukreximbank picked Credit Suisse First Boston and UBS to arrange its dollar-denominated deal, and was looking to press ahead in late September. Kiev has chosen CSFB and Citigroup to lead a likely $250 million issue.
Yushchenko has appointed long-time ally Yuri Yekhanurov, governor of Ukraine's eastern region of Dnipropetrovsk, as acting prime minister.