UkraineBond

Wednesday, April 30

Ukraine’s national energy company has reached an agreement to restructure its $825M green bond debt. NEC Ukrenergo has finalized an agreement to restructure the terms of its debt stemming from state-backed green sustainability-linked development bonds with a rate of 6.875% per annum, maturing in 2028...

Friday, April 25

Ukraine fails to reach an agreement on a $2.6B debt restructuring. On April 24, Ukraine announced that it was not able to negotiate an agreement with debt holders regarding the $2.6B connected with GDP warrants. Nevertheless, the Finance Ministry intends to continue ...

Thursday, April 24

Ukraine has initiated negotiations to restructure payments on its GDP warrants. A group of warrant holders has signed non-disclosure agreements and commenced limited negotiations with the Ukrainian side last week. In-person meetings are anticipated this week in Washington as part...

Wednesday, April 16

Investors have lost hope for a quick resolution to the war in Ukraine. Last week, Ukrainian eurobond prices dropped below the levels they were at before last year’s US presidential election, erasing all of the gains made from the anticipation of a swift end to the ...

Monday, April 14

Ukrainians are investing in bank deposits and dollar-denominated government bonds. According to the first quarter’s results, the volume of hryvnia funds in individuals’ accounts increased by 0.6%. The NBU reports that this positive trend has continued for the seventh con...

Monday, March 10

Ukrainian individuals and businesses have boosted their investments in government bonds by 33%. According to the Ministry of Finance, as of March 1 over ₴1.84T in government bonds were in circulation, while the investment volume by legal entities and individuals for the year climbed by 33% to ₴2...

Wednesday, February 26

Ukraine’s state debt increased by 14%, reaching $166B. What lies ahead for the budget? Analysts note that by the end of 2024, state and state-guaranteed debt amounted to ₴6.98T, or $166.1B. Over the year, this amount increased by more than 26% in hryvnia and by 14% in foreign currency t...

Thursday, February 20

Demand at primary government bond auctions has dropped to a low point. On February 18, the Ministry of Finance raised ₴249.42M for the state budget at an auction for domestic government bonds, which is ₴770.58M less than the previous week. These are the results from the ...

Tuesday, February 11

Shares of Ukrainian companies are rising significantly as investors anticipate an end to the war. The index of Ukrainian shares on the Warsaw Stock Exchange, WIG Ukraine, reached pre-war levels at the end of last week, jumping by nearly 25% in just a few days. This surge reflects the Warsaw financ...

Friday, February 7

Ukrainian bonds rise on hopes for a Trump peace plan. According to Bloomberg, Ukrainian dollar bonds have increased for five consecutive days, reaching new records as investors show optimism about a potential peace settlement. Specifically, bonds maturin...

Wednesday, November 6

In October, the Ministry of Finance raised a record ₴107B from the issuance of government bonds. Last month ₴106.9B was obtained from OVDP sales, equivalent to ₴83.4B and $569M. At the same time, military bonds accounted for almost ₴82.8B of the total volume of government bonds issued last month....

Friday, October 25

Ukrainian dollar bonds are rising in price; funds believe that Trump’s victory will contribute to a faster end to Russia’s war in Ukraine. Ukrainian bonds are reported to have risen almost 6% in October, becoming one of the best performing assets on the market, with their value approaching $.50-1. Warrants linked to Ukraine’s econo...

Monday, September 23

Ukraine will restructure government derivatives tied to GDP growth rates. Yuriy Butsa, the government commissioner for public debt management, notes that Ukraine issued GDP warrants in 2015. According to the terms, any GDP growth above 3% per year triggers payments to warra...

Monday, September 16

The Ministry of Finance of Ukraine will hold auctions to exchange OVDP bonds. The Cabinet of Ministers, as part of the implementation of the Medium-Term Strategy for State Debt Management for 2024-2026, approved a resolution that allows the MoF to carry out bond-swap operations...

Friday, September 6

Ukrainians are increasing their investment in government bonds: The share is already 4%. In August 2024, the Ministry of Finance raised ₴29.1B from the issuance of government bonds. Military bonds accounted for ₴6B of the total volume of government bonds issued in August. As of September ...

Monday, August 12

Ukraine has officially started restructuring its external debt. The Ministry of Finance announced on the London Stock Exchange the specifics for exchanging old bonds for new-issue bonds. Ukraine invites holders of each series of sovereign bonds and existing bonds,...

Thursday, August 8

Ukrainians’ interest in hryvnia assets is weakening. In June, for the first time in a long time, there was a reduction in the volume and share of hryvnia time deposits in the banking system despite maintaining positive rates in real terms. The Committee...

Friday, August 2

Despite market fears, Ukraine has paid $200M to GDP warrant holders. Ukraine has paid about $200M to holders of its GDP warrants, securities that weren’t part of a recent $20B Eurobond restructuring agreement with private creditors. The warrants have disbursements link...

The Cabinet of Ministers introduces a payment moratorium for Ukraine’s Eurobonds. The Cabinet of Ministers exercised the right granted to it by the Ukrainian Parliament and introduced a temporary moratorium on Ukraine’s Eurobond payments. “In connection with the impleme...

Monday, July 29

Capital markets in Ukraine show slow growth and development. Despite all the challenges brought about by the war, and contrary to forecasts, capital markets in Ukraine not only avoided collapse but also persisted in demonstrating slow growth and development. Al...

Tuesday, July 23

Ukraine agreed to a debt restructuring with its Eurobond holders. As Prime Minister Denys Shmyhal reported, Ukraine has reached fundamental agreements with a committee of Eurobond owners. This is a crucial stage in Ukraine’s debt restructuring, saving $11.4B i...

Friday, July 19

Ukraine is trying for the second time to restructure more than $20B in Eurobonds. A group of Ukrainian bondholders has signed non-disclosure agreements to begin a second round of formal talks with the Ukrainian government to restructure more than $20B in debt. Negotiations started ...

Wednesday, July 17

Banks invested 25% of assets in OVDP, so the NBU sees no need for further stimulation. The National Bank believes there is no need to stimulate banks to increase investments in domestic government bonds (OVDP). In January 2023, banks introduced the possibility of covering mandatory rese...

Friday, July 12

In August, Ukraine is scheduled to pay $210M to the owners of GDP warrants, but the Ministry of Finance is delaying the decision. Ukrainian Eurobonds holders are still determining the fate of their GDP warrants, the total nominal value of which is $3.2B. On August 1, in addition to the payment for Eurobonds maturing in 2026, Ukr...

Thursday, July 11

Owners of Ukrainian GDP warrants are rallying for negotiations on restructuring. Some holders of Ukrainian GDP warrants are planning to create a group that will represent their interests in restructuring sovereign debt, the data platform on public markets, and REDD companies repor...

Wednesday, July 10

In June, the Ministry of Finance attracted more funds from OVDP auctions than it paid out to investors. In June, the Ministry of Finance raised ₴38.41B and $407.33M from the issuance of domestic government bonds. ₴35.3B of the total volume of OVDP issued in June were military bonds. The refinancing perc...

Wednesday, July 3

Ukraine makes new offers to creditors to reach an agreement on debt restructuring. Ukraine plans to include GDP warrants in a proposal to restructure international bonds worth about $20B. This is a new attempt by Kyiv to establish contact with investors after formal negotiations thu...

Tuesday, July 2

Ukraine has a month to avoid default. According to The Economist, Ukraine is facing a looming financial crisis, because the two-year deferral of debt service payments that the country’s creditors agreed to is about to expire. The de...

The state budget has received $20.2B in revenue so far this year: Where did most of these funds come from? The Ministry of Finance reported that the largest revenues were from international partners and domestic state loan bond (OVDP) issuance. External financing amounted to $13.8B, and the largest donors ...

Friday, June 28

Ukraine seeks a common ground with bondholders and tries to avoid default. As Bloomberg explains, Ukraine is trying to reduce debt payments in wartime, but Kyiv needs to maintain good relations with creditors to restore the economy after the war. The Ukrainian government ins...

Wednesday, June 19

Ukrainian eurobonds drop in value following creditors’ refusal to write part of the debt off. The value of Ukrainian Eurobonds fell during trading on June 17, showing one of the worst performances for emerging markets. The country’s eurobonds weakened across the curve, with bonds maturin...

Tuesday, June 18

Ukraine has not agreed with its creditors on Eurobond restructuring terms. Ukraine and a special committee of creditors, representing the owners of almost 20% of Ukraine’s Eurobonds, negotiated between June 3 and 14 and exchanged restructuring proposals. However, according t...

Wednesday, June 12

The parliament explains how Ukraine could cover its budget deficit. Due to military expenses, a deficit has formed in the state’s budget. Ukraine spent 43% of the planned annual defense budget in just four months. According to the Chairman of the Parliament’s Fi...

Wednesday, May 22

Thanks to OVDP, the return on the Ukrainian banks’ assets increased to 11.6%. According to the National Bank, the return on assets increased by 0.2 percentage points on average over the last year, up to 11.6% in the first quarter of 2024, primarily due to revenues from OVDP ...

Ukraine’s bond market: Investors focus on longer maturities. Last week, investors’ interest in UAH bonds with longer maturities sharply increased as they tried to lock in current YTMs for longer. Taking advantage of the high demand, the Ministry of Financ...

Wednesday, May 15

In the first quarter of 2024, Ukrainian banks increased their net profit by 18% from last year. During the first three months of the year, solvent financial institutions showed a ₴40.5B ($1.05B) net profit. “The main factors in profitability growth in annual terms are an increase in intere...

Ukraine must pay $25.2B to service debt this year. The Ministry of Finance has preliminarily estimated that in 2024 Ukraine will have to pay more than ₴1T ($25.2B) as part of its repayment and servicing of state debt. As of May 1, the total amount of ...

Wednesday, May 8

Fears about Ukraine’s default were allayed in the Ukrainian parliament. The WSJ reported the other day that some owners of Ukrainian Eurobonds want Ukraine to resume servicing its obligations starting next year, with up to $0.5B in interest payments annually. If the parti...

Thursday, April 25

Bank of America believes that Ukrainian dollar bonds have growth potential. Strategists at BofA Securities, an American multinational investment banking division under the auspices of Bank of America, believe that Ukrainian dollar bonds show significant growth potential. Mean...

Tuesday, April 23

Ukraine will propose a $20B debt restructuring plan by May. Ukraine has prepared a $20B debt restructuring plan for private bondholders and plans to present it by the beginning of May. It is noted that it is critical for Ukraine to conclude a debt restructurin...

Ukraine’s hard currency bonds extended their losses after the US House of Representatives approved the financial and military aid package. According to Bloomberg, Ukrainian currency bonds initially jumped after the US House of Representatives approved a financial and military aid package worth nearly $61B. However, positive sentiment ero...

Thursday, April 11

Due to slowing inflation, the interest rate on inflation-linked bonds will decrease to 5.4% per annum in May 2024. According to analyst Oleksiy Blinov, as the growth dynamics of the consumer price index slowed to 3.2% per annum in March, the interest rate for inflation-linked government bonds in May will be 5.4% p...

Wednesday, April 10

Ukrainian debtholders plan to create a committee of creditors against the background of a possible debt restructuring. According to Bloomberg, large bondholders may intensify negotiations to create such a group after the IMF meeting on April 17. They note that time pressure is increasing as the moratorium on Ukrainian...

Wednesday, March 27

Following the discount rate decrease, Ukrainian bonds’ yield fell as well. At the first auction, after the NBU decided to lower the discount rate, the Ministry of Finance lowered rates for OVDP by 20-30 basis points. The secondary market also reacted by lowering rates for hr...

Monday, March 18

In February, hryvnia bonds were 50% more profitable than bank deposits. According to the Ministry of Finance, last month the weighted average yield of hryvnia government bonds amounted to 17.32%, while the Ukrainian rate index for consumer deposits was only 11.34%. The an...

Thursday, January 25

The Ministry of Finance raises ₴2.5B less from the sale of government bonds than a week earlier. At primary auctions on January 23, the agency placed OVDP in the amount of ₴6B, a week earlier, it was ₴8.51B. ₴289.33M was received from the sale of annual bonds at 16.8% per annum, ₴1.64B from bonds...

Wednesday, January 17

The Ministry of Finance received ₴552B from the sale of bonds; Ukrainians have doubled their investments in OVDP. Since the beginning of martial law, it has been possible to attract more than ₴1.2T to the state budget by issuing OVDP bonds. The government raised ₴552.6B ($14.5B) in 2023. The Ministry of Finance n...

Wednesday, December 6

Revenues from the sale of bonds by the Ministry of Finance in November exceeded payments by more than ₴24B. For 11 months of the year, borrowing by the Ministry of Finance on the domestic debt market of ₴164.98B in equivalent exceeded payments on bonds of the domestic state loan (OVDP), particularly in Nove...

Thursday, October 26

The Ministry of Finance has attracted almost ₴23B from the sale of OVDP bonds. On October 24, the Ministry of Finance placed domestic state loan bonds (OVDP) for the total amount of ₴22.91B, significantly reducing the rates for securities denominated in hryvnia. The state receiv...

Where is Ukraine’s revenue coming from this year? The primary sources of funding for Ukraine’s 2023 state budget are Ukraine’s international partners, former members of the National Bank Council Bohdan Danylyshyn said, based on data from the Mi...