Fixed Income

September 03, 2018

Ukrainian sovereign Eurobonds were little-changed last week, with news that the Finance Ministry managed to borrow USD 725mn (at 9% interest) to finance the coupon payments on outstanding Eurobonds clearly failing to impress investors. It appears that the market is waiting for a verdict from the IMF after an in-country mission completes its evaluation on Sept 19. The closest benchmark issue to 10-year bonds, Ukraine-27s, remained at 93.0/94.0 (8.9%/8.7%) and the shortest issue, Ukraine-19s, was quoted at 100.5/101.0 (7.2%/6.7%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) traded at 55.2/56.2 cents on the dollar.