Fixed Income

July 08, 2019
 

Ukrainian sovereign Eurobonds saw gains last week after the country’s state-owned railway monopoly UkrZaliznytsa (UZ Rail) successfully raised USD 500mn through a placement of 5-year Eurobonds at a relatively low 8.25% rate. The company’s previous international bond, which was restructured in 2016, has a coupon of 9.875% and maturity in 2021. The placement of the UZ Rail bond is an encouraging sign for investors in the Ukrainian Eurobond universe; state energy monopoly Naftogaz is expected to tap into the yield-hungry market as well shortly. In other news, the trilateral talks involving Ukraine, Russia, and the European Commission on transit of Russian natural gas across Ukraine in 2020 will resume in September, Vice President of the European Commission Maros Sefcovic has said. All the sides are jockeying ahead of the expiration of the current 10-year gas deal at the end of 2019.