Fixed Income

November 11, 2019

Prices for Ukrainian sovereign Eurobonds were little-changed last week as portfolio managers were focusing on the placement of new Ukrainian corporate debt issues. State-owned energy giant NaftoGaz sold USD 500mn in 7-year Eurobonds at 7.625% and Rinat-Akmetov-owned energy company DTEK Renewables raised EUR 325mn with a placement of 5-year bonds at 8.50%. The new DTEK debt is expected to be rated at B by Fitch Ratings and at B- by Standard & Poor’s. Also last week, state-owned UkrEximBank tapped the international market with 10-year Eurobonds for USD 100mn in the form of subordinated debt, which resulted in a higher yield of 9.95% for investors. The Exim issue has a put option in 2024.