Fixed Income

January 14, 2019

Ukraine’s benchmark 10-year Eurobonds jumped by 2.5% last week to close at 95.4/96.1 (10.5%/10.4%), and medium-term Ukraine-24s added 2.1% to 89.3/90.2 (10.3%/10.1%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) were unchanged at 57.3/58.3 cents on the dollar. In the corporate sector, quotes for DTEK-24s were flat at 96.2/97.2 (11.7%/11.4%) while Metinvest-26s edged down by 0.3% to 89.4/89.4 (10.6%/10.5%). Quasi-sovereign issue OschadBank-23s inched up 0.4% to 98.9/99.1 (9.7%/9.6%) despite the recent stress test from the National Bank which revealed that OschadBank may need additional capital of UAH 6.2bn (USD 220mn).

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