ukrainebonds

, reported the Ministry of Finance. On October 19, the agency offered investors two issues of securities in national currency and one in foreign currency. The government bonds in hryvnia had maturity 1 year and 2 years, in US dollars it was 2 years. Rates did not change: the weighted average yield of 1-year IGLBs was 11.5%, 2-year – 12.4%.

 Since the beginning of 2021, Ukrainians have purchased more than UAH 2 bln worth of domestic government bonds through Privatbank, of which 65% (almost UAH 1.3 billion) are online through Privat24. At the same time, the number of clients who invested their money in government bonds was more than 2,500 people. The greatest demand for individuals is 12- and 18-months hryvnia IGLBs, as well as 24 US dollar bonds, the bank added.

. At the Bond auctions, the Ministry of Finance offered investors six issues of securities in the national currency. The weighted average yield of 6-month was 9.70%, 1-year – 11.50%, 1.5-year – 11.57%, 2-year – 12.40%, 3-year – 12.49%, and 5-year – 12.75% (reports).

The government borrowing plan for 2022, submitted by the government to the Verkhovna Rada along with the draft state budget.  It involves the issue of Eurobonds with a maturity of 5-15 years for the equivalent of $1.5 billion, or UAH 42.9 billion. The weighted average interest rate on them is 7.5%.

According to Prime Minister Denys Shmyhal: “After the completion of the merger [of the State Mortgage Institution and Ukrfinzhytlo], we are preparing a bond issue worth about UAH 20 billion so that mortgage programs are available to as many Ukrainians as possible.” The parliament is currently considering a bill that proposes the issuance of government domestic loan bonds for UAH 20 billion for the implementation of the Affordable Mortgage presidential program. Its adoption will in the short term provide about

through its weekly bond auction. Netting 42% more than in the previous week, the auction took place with unchanged yields: 1-year -11.15%, 1.5-year – 11.3%; and 2-year – 12.09%. The 1-year bond was the most popular, drawing 62% of investment, the Ministry reports on Facebook.

 Analysts predict that auctions will dwindle in August – a trend that underscores the need for IMF aid prior to the big debt repayments of September.

(Interfax-Ukraine). The initial yield guidance was 6.625%. The transaction was oversubscribed thrice. In May, Ukraine placed $1.25 billion in Eurobonds maturing in 2029 at 6.876%. BNP Paribas and Goldman Sachs are organizing the transaction. In September, the Ukrainian government faces a 2021 peak foreign debt repayment – over $2 billion.

The sale covered half of UAH 15.6 billion in principal repayments due today. Interest rates on all six bonds were unchanged from the previous week, the Ministry reported. They ranged from 10.99% for 1-year hryvnia bonds to 12.59% for 5-year hryvnia bonds. The Ministry also sold €8 million worth of 1-year Euro bonds at 2.5%. Demand may have been weak as investors were waiting for tomorrow’s meeting of the central bank’s rate setting board.

“The recent placements of new local bonds do practically nothing for financing government spending because of the growing load of local bond redemptions.”

, the Ministry reported on its Facebook page. Coming after last week’s settlement of the government’s $1.25 billion Eurobond issue at a historically low interest rate of 6.876%, yields were virtually unchanged yesterday.  Unchanged were 6-month bonds at 9% and 1-year bonds at 11.2%. Three-year bonds moved up two basis points, to 12.3%.

the NBU said. The following amendments were introduced: “transactions to distribute income on and redeem Eurobonds as well as other issuer transactions for the purpose of placing such securities were removed from the list that is subject to a EUR 2 million annual limit; foreign currency can be bought to be deposited on the own account of the issuer with a Ukrainian bank until the maturity date of liabilities under Eurobonds.”

, the Ministry of Finance announced on Friday. Joint Book runners included BNP Paribas, Deutsche Bank, Goldman Sachs International and JP Morgan. “The funds were transferred to the account of the State Treasury of Ukraine and will be used for general budgetary purposes,” said the Ministry.

the Ministry reported on its Facebook page. Yields in hryvnia reflect the Central Bank’s increase in the nation’s prime rate 10 days ago to 7.5%. The yields were: 6-month – 9%; 1-year – 11.2%; 1.5 year – 11.3%; 2-year – 11.96%; 3-year – 12.28%. In the foreign currency placements, the Ministry sold $21 million worth of 1-year dollar bonds at 3.7% and €42 million worth of 1-year euro bonds at 2.5%.

reports Reuters. But the lengthy, London-based story starts: “Fund managers are trimming exposure to Russia and Ukraine on fears that years of tensions could finally erupt into outright war, bringing economic ruin for Ukraine and more sanctions on Russia.” On Ukraine, Reuters notes: “The volume of local bond holdings held by foreign portfolio investors has been declining since late March.”

, or IGLBs, Danylo Hetmantsev, head of the Rada Committee on Finance, Tax and Customs Policy, wrote after Tuesday’s hryvnia bond auction sold only the equivalent of $7.7 million. Writing on his Telegram channel, Hetmantsev predicted: “As soon as the situation at the border stabilizes, investors will start buying IGLBs again.”

. Of the $17.8 million put up for auction, only 28% were sold. The Ministry reported that 1-year bond sold unchanged with a yield of 10.75%, the 18-month bond sold also unchanged with a yield 11.1%. The two-year dollar bond sold with a yield of 3.9%. Dollar bond sales totaled $49 million, 86% of total sales yesterday.

, ICU has reported. The Kyiv investment house wrote: “Sentiment changed at the end of the week when J.P. Morgan announced that it was including the Ukrainian note due 2025 to the watch list to be added to the GBI-EM [Government Bond Index-Emerging] index.”

at the Finance Ministry’s weekly auction. The auction nearly covers repayment of $325 million scheduled this week. With yields unchanged, investors bought $49.6 million of 1-year bonds at 3.7%, and $106.8 million of 2-year bonds at 3.9%, the Ministry has reported on Facebook.

to 7.98%, and on 1-year bonds by one basis point, to 10.74%. To sell $34.6 million worth of 2-year bonds, the Ministry raised the yield by 10 basis points, to 11.8%, according to the Ministry’s website. In general, the weighted average rate at yesterday’s auctions fell to 10.67%, from 11.64% one week ago. Last week, the Ministry sold the equivalent of $232 million, reports ICU.

Electricity consumption last week was 6.5% more than forecast. But coal reserves fell to one third of required minimums. Thanks to imports, Kudrytskyi does not predict immediate power shortages.

DTEK Group, Ukraine’s largest private power producer, called on the government yesterday “to abolish price caps, which are an obstacle to the liberalization of the electricity market.” The company cited the example of the EU, where the cost of electricity production during peak loads can increase significantly. DTEK said: “We call on the government to intervene in the situation and immediately hold an anti-crisis headquarters with the participation of the Prime Minister.”

Ukraine’s Energoatom will soon stop sending spent nuclear fuel to Russia for processing and storage, Petro Kotin, the company head, said yesterday. In July, the Centralized Spent Fuel Storage Facility will open, he said. At the same, time, Energoatom is completing a 43 km rail connector to the facility, built by Holtec, a US company, near Chornobyl. Nuclear supplies about half of Ukraine’s electricity.

With demand strong for Ukrainian government bonds, the Finance Ministry depressed yields on all five hryvnia bonds sold at yesterday’s auction, the Ministry reported. With yields dropping from six to 44 basis points, the final range was 9.15% for 3-month bonds to 12.05% for 3-year bonds. The government sold hryvnia bonds for the equivalent of $213 million. Also posting results on Facebook, the Ministry says it sold $42 million worth of 2-year dollar bonds at 3.9% and €70.5 million worth

Looking beyond the bland public statements surrounding Ukraine’s recent suspension of talks with the IMF, Anders Aslund, a veteran IMF observer, writes in an Atlantic Council blog: “No agreement was concluded between the IMF and the Ukrainian government recently because they fundamentally disagree about pretty much everything.” Offering the only way forward, Aslund writes that President Zelenskiy “urgently needs to refocus on the anti-corruption messages that enabled him to win landslide election victories in the presidential and parliamentary votes of

DiDi, China’s giant online taxi service, plans to launch this year in Ukraine, reports AIN.ua news site. With 550 million users, tens of millions of users and billions of dollars in revenues, DiDi entered Russia last year, a first step in a plan to expand across Eastern Europe. Last week, DiDi posted on the GRC job search website that is looking for a manager to launch in Ukraine.

DiDi will compete with Bolt, Uber and Uklon for Ukraine’s taxi market, estimated by Uklon at $800 million a year. Uber, the first mover in Ukraine, now operates in seven Ukrainian cities and claims that 4.3 million Ukrainians have downloaded its mobile app. Uklon operates in 19 cities and claims nearly 3 million users. Bolt operates in 10 cities and claims 3 million users.

Taxi services got a boost yesterday when the Rada overwhelmingly approved a bill raising the penalty for drunk driving to $608. For repeat offenders, the fine is doubled to $1,216, licenses are suspended for three years and vehicles can be seized. The Rada also tripled the fine – to $60 – for drivers caught breaking the national speed limit of 50km per hour in populated areas.

McDonald’s Ukraine plans to expand a pilot program of restaurant waste recycling to all 96 restaurants in the country by the end of this year, the company announced yesterday. As part of a worldwide McDonald’s drive to switch from plastics to paper by 2025, the restaurants in Ukraine switched last year to paper cups for drinks and paper boxes for salads.

Kyiv’s 11th Regus office work space opens in Podil next month, reports the parent company, Luxembourg-based IWG Plc. Despite last year’s economic recession, total occupancy of the 10 existing Regus work spaces in Kyiv is 78%, Yulia Lytvynenko, Ukraine director of IWG, tells Interfax-Ukraine. Predicting that several large leases will be signed in coming weeks, she predicts that the overall occupancy will rise “to 83% by March.” The new Regus will occupy three floors of the new Volodymyrsky business center

Kyiv’s Sikorsky Airport is to add 500 meters to its runway, allowing Wizz Air, its primary user, to use larger jets. By moving to Airbus 321 jets, Wizz Air says it can reduce frequencies and noise in the capital’s Zhuliany neighborhood. Wizz Air has ordered 190 Airbus 321s, which carry 30% more passengers than the Airbus 320s, currently the workhorse of Wizz Air.

Mayor Klitschko signed an order last week for design work to start on a 5-year upgrade of the airport. By expanding the runway to 2,810 meters, upgrading lights and adding an instrument landing system, the airport is to be certified to land jets in bad weather, avoiding diversions to Boryspil. Ukraine’s second busiest airport, after Boryspil, Sikorsky handled 2.6 million passengers in 2019. The City Council is mulling a second expansion: increasing the airport’s territory by 5%, to 278 hectares.

German and Biden Administration officials are discussing a package of measures that would allow the Russia-German gas line to open, but protect Ukraine’s security concerns, according to a Financial Times story headlined: “Germany aims for new deal with Washington on Nord Stream 2.” One proposal would empower Germany – or a German-American commission — to shut down the Nord Stream 2 pipeline if Russia stopped sending minimum gas flows across Ukraine, increasing risk of an all-out Russian military attack.

“As Berlin seeks solutions, early signs from Washington indicate that the Biden administration is seeking to defuse the Nord Stream 2 debate,” the FT writes. “Two knowledgeable sources said [US Secretary of State Antony] Blinken has demonstrated a willingness to minimize sanctions.” Bloomberg later posted a matching story yesterday, headlined: “Germany Seeks Deal With Biden on Controversial Pipeline.” Bloomberg quotes Mark Helfrich, a Bundestag member from the ruling Christian Democratic Union, saying: “German, EU and U.S. officials are in talks

A cold weather spike in electricity consumption, a lack of coal, and power plant breakdowns are forcing Eastern Ukraine to import electricity from Belarus and Russia and Western Ukraine to import electricity from Slovakia, Romania and Hungary, reports Ukrenergo, the national power distribution company. As of Monday, 19 thermal power plants were offline, pulling 6,270 MW out of the system, Volodymyr Kudrytskyi, Ukrenergo’s chairman told a forum in Kyiv yesterday.

The vaccination of 10 million Ukrainians at risk – about one third of all adults – is a condition for Ukraine receiving a $30 million World Bank loan this spring under its Covid-19 Emergency Response and Vaccination in Ukraine project, the Finance Ministry reported Tuesday. The money is to be part of a $90 million World Bank loan for Covid testing and vaccinations. Deputy Finance Minister Roman Yermolychev said: “We must understand that these are loans, and therefore their disposal

US support to Ukraine for combatting the pandemic totals $48 million over the last year, Kristina A. Kvien, US Chargé d’Affaires, told the Coronavirus Forum on Monday. She said the money has gone to bolstering Ukraine’s health system, supporting small businesses, and countering “COVID-related disinformation that threatens our collective ability to get this pandemic under control.”

Germany is proving Ukraine with a €13.1 million medical care grant that includes supplying equipment for outpatient diagnosis and treatment of coronavirus. This grant, and a second one for €23.5 million are largely focused on Ukraine’s war affected southeast where the money is to go for upgrading hospitals and building housing for internal refugees.

Talks with IMF will be delayed to the spring, making a staff level agreement in May the optimistic scenario, Liga.net reported in a lengthy story, citing unnamed Rada members and Central Bank officials.

Dragon writes: “The government has sufficient liquidity buffers to proceed without IMF financing until end-May (assuming full rollover of domestic debt), but faces an increase in fiscal funding needs in 2H21, especially in September, the peak of external debt redemptions ($2.2bn), and December, due to seasonal expansion of the budget deficit (at least half of $8.4bn full-year gap). Thus, authorities would need to secure IMF financing by August at the latest in order to facilitate funding from other sources (IFIs,

The Finance Ministry increased 2.5-fold its sale of bonds yesterday, but kept yields largely unchanged at the weekly auction, according to results posted on Facebook. Of the total $467 million in dollars and hryvnia equivalent sold, the 16-month hryvnia bond was the big seller, accounting for 31% of all sales and going for a weighted average of 11.15%. Of the six bonds sold, interest rates ranged from 9.89% for 6-month bonds to 12.5% for 6-year bonds. In addition, the Ministry

With snow and sub-freezing temperatures forecast through Friday, restrictions on trucks entering Kyiv are expected to continue off and on. At a peak, 3,000 trucks were stopped outside the capital, with their drivers waiting for roads to clear. At eight entry points to the city, the State Emergency Service pitched warming tents, offering hot tea and biscuits. Last night, after rush hour traffic jams subsided, trucks were allowed into the city, alleviating fears of shortages in supermarkets.

Due to the cold temperatures, coal reserves at thermal power plants fell sharply during the first week in February, hitting 57% of minimum, required volumes, Ukrenergo reported yesterday. To fill the gap, hydro plants on the Dnipro cascade increased output by 27% during the first week. Energoatom is advancing by several days the scheduled relaunching of reactor No. 2 at Khmelnitskiy Nuclear Power Plant.

DTEK Energy has announced a tentative agreement with bond and bank debt holders to restructure much of its $2 billion bond and bank debt. After 10 months of negotiations, the deal’s center piece is exchanging guarantees from DTEK Oil & Gas Receivables for $425 million of new DTEK Oil & Gas notes. Listed on the Irish Stock Exchange, these bonds would pay 6.75% cash interest semiannually and mature Dec. 31, 2026. As part of the deal, DTEK Energy will appoint

Analysts generally welcomed the proposed exit from a default that rattled investors last March:

Ukraine’s economic activity in the fourth quarter of last year was only down 1% yoy, far better than the forecast drop of 3%, Economy Minister Ihor Petrashko told reporters Tuesday at the Ukraine 30 Coronavirus: Challenges and Responses Forum in Kyiv. “Currently, the conditions for economic recovery, in principle, are quite favorable,” he said. “Our forecast for 2021 – an increase of 4.6% – we retain unchanged and [see as] quite likely.”

Adamant Capital wrote: “The updated terms look significantly better than those disclosed at the end of November…We confirm our ‘Buy’ recommendation.”

Ukraine’s steel production could increase by as much as 6% this year, to 21.8 million tons, according to a study prepared by the GMK Center, a metals industry analytical and consulting group: “Forecast of Steel Production in Ukraine in 2021.” By reorienting exports to China, Turkey and Southeast Asia, Ukraine’s steel sector ended 2020 recording a 1% drop in production, but rising from 13th to 11th place in the ranks of world steel producers. “Ukrainian steelmakers begin 2021 with the

Concorde Capital wrote: “The updated DTEK’s offer provides more clarity about minimum payments to bondholders…the updated restructuring terms look balanced.”