Ukraine bond poses dilemma for banks

lunes 28 de abril de 2014 03:52 GYT
 

* Sovereign considering US-backed bond deal

* Bankers question impact on arrangers' Russia business

* Ukraine faces June 4 redemption

By Sudip Roy

LONDON, April 28 (IFR) - Arrangers of a potential US government-guaranteed bond from Ukraine face a delicate decision about whether to get involved in such a politically charged transaction, according to bankers.

Ukraine could issue a bond after the US Treasury signed a US$1bn loan guarantee with Kiev earlier this month as part of an internationally co-ordinated effort to support the troubled country. US banks are expected to lead any transaction.

But as the stand-off between Ukraine and Russia threatens to turn into a full-blown military conflict, some bankers say the decision to work on the deal is far from straightforward.

"Just to get the internal approvals huge," said one, who suggested that at his firm discussions would need to include several senior officials.

He added any bank considering taking on the transaction would have to weigh up the potential cost to its Russia business.   Continuación...