Fixed Income
October 06, 2014
Ukrainian sovereigns finished generally higher last week as a USD 1.6bn Eurobond redemption – albeit two days late on Thursday (Oct 2) - by state-owned energy operator Naftogaz provided some confidence to investors. Taking into account the difficult situation on the country’s currency market, the NBU was forced to sell foreign currency from its reserves to help finance the repayment. Meanwhile, on the local bond market, the Finance Ministry raised UAH 1.3bn selling 10-year papers at 15.5%; on the secondary market, long term UAH-denominated bonds are quoted at around 20%, and we therefore assume the government bonds on the primary market were purchased by state-owned banks.
