S&P rates new Colvis notes B

Standard & Poor's said it assigned its B foreign currency senior unsecured debt rating to Colvis Finance Ltd.'s upcoming $107.5 million notes.

S&P said the B rating on the notes is the same as the long-term sovereign credit rating on Ukraine (B/positive/B) as all amounts payable under the loan agreement that backs the notes are guaranteed by Ukraine.

The proceeds of the transaction will ultimately be used to finance an investment project by Yuzhmash. The issuer, Colvis Finance Ltd., is a special purpose company limited by guarantee, whose member (known as The Law Debenture) holds the applicable rights on trust for charitable purposes. The issuer has the single objective of participating in this transaction.

Colvis Finance Ltd. will issue $107.5 million of notes, the proceeds of which will be used to grant a loan of an equal amount to Yuzhmash. The repayment of this loan by Yuzhmash to Colvis Finance Ltd. is guaranteed by the Ministry of Finance of Ukraine.

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