Fixed Income
Quotes for Ukrainian sovereign Eurobonds were little-changed last week, ending their long run of gains ahead of the scheduled bondholder voting regarding August’s restructuring deal. The deadline for bondholders to submit electronic voting instructions is today (Oct 12), while the meeting is set for Wednesday (Oct 14). The quorum at the initial meeting is 2/3 of outstanding notes (determined on a series-by-series basis). An affirmative vote of 75% of the attending notes is required to approve the restructuring. Ukraine-15s, which will be directly exchanged for a new issue with maturity in 2019, ended flat at 82.0/83.5. This suggests that the new 2019 issue will begin trading at a yield near 7%. Long-term benchmark Ukraine-23s were unchanged at 79.5/81.5 cents on the dollar. There was important news last week for holders of City of Kyiv Eurobonds, with the issues due in 2015 and in 2016 now entering the restructuring process. Kyiv city council voted to impose a moratorium on foreign
