Ukraine enables easier Eurobond issuance and borrowing abroad, cancels EUR 2 mln limit for repayments, eases currency regulations

13 May 2021

On 23 April 2021, the National Bank of Ukraine amended its Resolution “On Approval of the Regulation on Protection Measures and Determination of the Procedure for Conduct of Particular Foreign Currency Transactions” No. 5 of 2 January 2019 (usually abbreviated as “Resolution No. 5”). The amendments came into force on 27 April 2021.

These amendments are important for Ukrainian companies that place their debt securities abroad in order to obtain external financing.

First, an annual limit of EUR 2 million does not apply to the interest payments under and repayment of debt securities issued abroad by a Ukrainian borrower. The same easing covers other payment operations conducted in connection with the placement of such debt securities.

Second, a Ukrainian company that buys foreign currency in order to pay interest and repay debt securities placed abroad may now accumulate such foreign currency on its current account in a Ukrainian bank until the closest payment date, subject to the following conditions:

Such further liberalization of currency market regulations is expected to favor capital attraction into Ukraine’s economy and, more specifically, to streamline direct issuance abroad of debt securities by Ukrainian companies.

The full text of the Resolution (in Ukrainian) is available here.