Fixed Income

August 17, 2020

Ukrainian sovereign Eurobonds ended lower last week despite a large buy-back by the Finance Ministry of the so-called VRI sovereign derivatives linked to Ukraine’s future GDP growth. The securities, also known as GDP warrants, were issued in 2015 with a total par value of USD 3.2bn to investors who accepted a write-down on 20% of Ukraine’s outstanding Eurobond debt. Meanwhile on the COVID front, the number of total confirmed cases in the country since March passed the 90,000 mark, and the Health Ministry reported a sharp increase in the number of patients with severe symptoms. Compared to May and early June, the number of sick people has doubled. President Zelensky has urged citizens to continue to observe personal safety measures.