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Over the past month, Ukrainian sovereign bonds denominated in dollars have risen in price by 12%. Investors expect that the re-election of Donald Trump will lead to a ceasefire, and Ukraine will be able to pay off its creditors. The jump in Ukrainian bond prices occurred as rates influenced by the new US administration flooded global financial markets. The rally has been going on for more than two months since Kyiv completed a debt restructuring worth more than $20B. Bondholders

Fund managers have been buying Ukraine’s dollar bonds in a bet that Donald Trump would win the US election, accelerating an end to the war with Russia. Ukrainian Eurobonds and GDP warrants increased with news of the Trump victory. Eurobond prices increased by 1.72-3.8% to $38.15-60.71, maturing in 2029-2030 and 2034-2036. Ukrainian GDP warrants maturing in 2041 increased by 1.14% to $73.44. In addition, values of some Ukrainian shares on foreign stock exchanges increased on November 6 after the election.

Nova Poshta from the Nova Group, a leading logistics operator in Ukraine, notes a significant demand for its bonds from a wide range of institutional investors, the group’s financial director Petro Fokov said. Nova Poshta conducts closed placement of bonds among a predetermined circle of institutional investors, but they can also be purchased by individuals on the secondary market. “We have individual bondholders, but there are not so many of them compared to banks, insurance companies, and pension funds,” Fokov

The Ministry of Finance of Ukraine said that 97.38% of holders of $20.47B ($24.3B including interest) in Eurobonds  support the restructuring agreement, exceeding the required two-thirds threshold. “This landmark decision is a decisive stage in Ukraine’s strategy aimed at preserving macroeconomic stability, ensuring the sustainability of the national debt and preserving the resources necessary to finance the country’s defense in the face of full-scale Russian aggression,” the Ministry of Finance emphasized. The restructuring involves: a nominal 37% decrease in public

Ukraine announced a four-day extension – until the evening of August 27 – of the deadline for early consent to the exchange of Eurobonds within the framework of their restructuring, which provides the holders with the most favorable conditions, according to the Ministry of Finance of Ukraine. Meanwhile, the settlement date remains unchanged and is expected to occur on or around August 30, 2024. In turn, the special committee of creditors of Eurobond owners stated that it supports Ukraine’s decision

As Bloomberg explains, Ukraine is in a state of war for the third straight year and has become the largest recipient of investment from the Arkaim Advisors debt fund. With a return of 12% this year, the fund outperformed 99% of similar funds. Arkaim owns debt obligations from state-owned companies such as Naftogaz and Ukrzaliznytsia, as well as the mining and metallurgical holding of Metinvest. These companies have shown strong emerging market returns of around 73%, 52%, and 19%, respectively,

In May 2024, the general fund of the state budget received ₴151.8B, which is less than in February, March, and April, the Ministry of Finance notes. According to the results from the five completed months of the year, the state budget’s general and special funds received ₴1.075T in taxes, fees, and other payments. At the same time, cash expenditures for this period amounted to ₴1.545T. Actual state borrowing to finance the general fund of the state budget for January-May amounts

A group of foreign bondholders, including BlackRock and Pimco, will pressure Ukraine to resume interest payments on its debt as early as next year. The WSJ notes that the owners of outstanding Ukrainian Eurobonds worth $20B recently formed a committee and hired lawyers from Weil Gotshal & Manges and bankers from Partners PJT to conduct negotiations. The creditors want to reach an agreement with Ukraine to resume payments in exchange for writing off a large part of the country’s outstanding

The NBU sees room for further discount rate reduction after its reduction to 13.5% on April 26, 2024. The condition for the next step is the preservation of favorable macro-financial trends. In particular, the economy must further recover, supported by significant adaptability from both consumers and businesses, economy-stimulating fiscal policy and further revival of consumer demand. Maintaining macro-financial stability will also have a significant impact. The NBU expects that the relevant changes will support the development of lending and the

Beginning in August, Ukraine must pay Eurobond holders $4.5B to service its debt. In 2024, Ukraine is scheduled to pay $910M that will be applied to the principle and $3.61B in interest. However, this amount is impossible for the country’s wartime budget, so to postpone these and other payments to external commercial creditors, Ukraine is starting the official process of restructuring its debt payments. Informally, relevant consultations have been taking place since the fall of last year, said the head

According to the Settlement Center for Servicing Contracts in Financial Markets, registered investors in securities in Ukraine increased by 34%, or by 46,000, in 2023. The volume of operations with hryvnia bonds of the domestic state loan (OVDP) in December amounted to ₴29.6B (-32.5% compared to November), and the number of transactions also decreased by 5%, to 20,900. At the same time, 4,500 transactions were conducted with dollar OVDPs (+41%), but their volume significantly reduced to $99.4M. The number of

According to the WSJ, Ukraine wants to sell military bonds to foreign individuals, mainly from Western Europe, as the government continues to seek ways to finance its military spending. According to analysts, the government’s financing of the military’s efforts directly depends on the ability to cover its budget deficits. It is reported that Ukraine’s economy has somewhat stabilized this year. This has triggered a sharp rise in international bond prices since June. International bonds traded around $0.29 per $1 last

Starting September 11, the National Bank will increase the list of benchmark bonds of the domestic state loan, through which banks can cover part of their required reserves, the regulator said in a statement. The domestic government bonds (OVDP) the Ministry of Finance first placed on August 29, 2023, will be added to the list. In total, there are already nine reserve bonds on the list. It is noted that the expansion of the list will contribute to the further

On April 11, the Ministry of Finance raised UAH 2.37B (equivalent) for the state budget at auctions for the sale of military bonds of the domestic state loan. Only UAH 94.89M was received from the sale of 12-month hryvnia bonds at 18.5% per annum. In addition, the Ministry of Finance placed bonds with a maturity of 16 months for UAH 698.34M at 19% per annum. The financial department also placed two-year reserve bonds for UAH 738.07M at 19.6% per annum,

On January 31, the Ministry of Finance attracted only UAH 10.61B to the state budget at auctions for the sale of domestic state loan military bonds, despite the increase in the issuance of the benchmark OVDP. According to the Ministry of Finance, it was possible to attract UAH 228.95M from the sale of nine-month bonds, the rate on which decreased to 15% per annum compared to 16% a week ago. The placement of annual bonds at 18.5% brought UAH 2.1M,

On January 24, the Ministry of Finance drew UAH 13.22B to the state budget through auctions of military bonds. According to the Ministry of Finance, UAH 472.86M was raised from the sale of six-month bonds at 13% per annum compared to 13.43% a week ago. The Ministry of Finance placed nine-month bonds for UAH 23.27M at 16% per annum and 12-month bonds for UAH 1.5B at 18.5%. Another UAH 6.32B came from the sale of two-year bonds at 19.59% per

The National Bank of Ukraine issued another UAH 15B by purchasing government bonds. In this way, the NBU bought government bonds for the entire agreed amount this year, which totals UAH 400B, reported the NBU. Thus, on Monday, December 19, the National Bank’s OVDP portfolio amounted to UAH 704.57B, compared to UAH 689.57B on Friday, December 9. The NBU remains the largest owner in the OVDP portfolio, with 51.93% of total ownership. The banks own bonds worth UAH 483.78B or

The auction for the sale of military bonds on July 19 brought UAH 2.9B ($80M) to the budget, announced the Ministry of Finance. The Ministry increased the interest rates on military bonds with a term of 1 year from 11% to 14%. Last week, the ministry was able to attract only UAH 98M with an interest rate of 11%. And on July 19, similar securities with a rate of 14% drew UAH 1.78B. Also, the Ministry of Finance placed UAH

Since the beginning of the war, the volume of funds paid by the Government of Ukraine for repayment of its domestic debt exceeds the volume of funds attracted to the state budget by UAH 21.9B, reported the National Bank. Thus, from February 24 to July 18, 2022, the government allocated about UAH 90.5B, more than $1.5B and €168M, to repay its domestic government bonds. At the same time, the government raised more than UAH 85.8B, $826.6M, and €283.4M from the

After collapsing to a historic low, Ukrainian Eurobonds rose in price by an average of 14.5% at the end of last week, reported Bloomberg. It is noted that the increase in prices was facilitated by a statement from the IMF representative regarding Ukraine’s further servicing of its national debt. As a result, during July 11-13, the prices of Ukrainian securities fell by an average of 20%. This was provoked by a request by Naftogaz of Ukraine to postpone all payments