Ukraine's government will likely look to tap foreign bond investors for millions of dollars in 2011, capitalising on the Ukraine’s successful IMF loan program and growing demand for emerging market debt.

The Ukrainian government, which needs to repay USD3 billion in foreign debt this year, could borrow between USD2 billion and USD4 billion, analysts note.

Private sector borrowers, whose credit standing has not improved at the same rate as the state, could account for up to USD4 billion.

"Interest in emerging market debt is tremendous and Ukraine, definitely, can count on good demand for both sovereign and corporate paper," added Vitaly Vavrishchyuk, an analyst at brokerage BG Capital.

Ukraine's benchmark 2020 Eurobond has traded at a yield of about 8.0 percent in recent weeks and sovereign bond spreads, according the JPMorgan EMBI Plus index, have been hovering at around 400 basis points over Treasuries, compared to around 600 bps last July prior to the standby loan agreement with the IMF.