The city of Zaporozhye to place municipal bonds worth 25 mln hryvnyas on June 1, 2004
Zaporozhye City Council intends to start selling municipal bonds worth 25 mln hryvnyas through authorized banks Industrialbank and Ukrsibbank. This info was disclosed in the Councils official report. The sale should be done by July 30, 2004.
The bonds circulation term - June 1, 2004 through December 28, 2006. One bond par price - 1,000 hryvnyas. The yield - 15,35% p.a. The yield to be paid semiannually.: January 28, 2005; June 30, 2005; December 29, 2005; June 29, 2006 and December 28, 2006.
According to the issue terms the bonds can be bought back before due date on June 30, 2005, December 29, 2005 and June 29, 2006 (each time not more than 6 mln hryvnyas worth).
The city of Zaporozhye plans to use the proceeds to finance its construction and infrastructure development projects.
In late December 2003 the City Council decided to issue municipal bonds worth 25 mln hryvnyas in 2004. They chose Industilabank and Ukrsibbank for bonds placement and Credit-Rating agency (Kiev) for rating assignment. Interregional Fund Soyuz acted as the issue depositary.
The city of Donezk also announced its intent to issue municipal bonds worth 20 mln hryvnyas in 2004. On December 31, 2003 Kiev City Government completed domestic 5-year bond placement, having sold bonds worth 100 mln hryvnyas out of 150 mln offered. In 1997 the city of Odessa issued 1-year municipal bonds worth 61 mln hryvnyas yielding 50% p.a., but could not redeem most of it in 1998.