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Ukraine Fixed Income Weekly (November 30, 2015)

Eurobonds overview

 All Ukraine’s Eurobond prices lost last week, save the Ukraine-20 which gained 0.3 cents and was traded at 96.8 cents. Ukraine-19, Ukraine-21, and Ukraine-22 lost 0.4 cents on average and were traded at 97.7 cents, 96.0 cents, and 95.5 cents respectively. Ukraine-24, Ukraine-25, Ukraine-26, and Ukraine-27 lost 1.3 cents on average, and were traded at 93.6 cents, 94.5 cents, 93.1 cents, and 92.6 cents correspondingly. The price development most likely reflects a gradually increasing market offer for the new Eurobond issues.

Read more: Ukraine Fixed Income Weekly (November 30, 2015)

Ukraine Fixed Income Weekly (November 23, 2015)

Eurobonds overview

All Ukraine’s Eurobond prices gained 2.5 cents on average last week, save the Ukraine-20, and the Ukraine-25, which gained 1.1 cents and 0.3 cents to be traded at 96.5 cents and 95.4 cents respectively. Ukraine-21 and Ukraine-22 traded at an average 96.2 cents, Ukraine-23 and Ukraine-25 at an average of 95.5 cents, Ukraine-24, Ukraine-26, and Ukraine-27 traded at an average 94.5 cents. Ukraine-19 gained 15.3 cents to be traded at 97.8 cents. The price rally have been dictated by insufficient market offer for the new bonds at this time, in our view.

Read more: Ukraine Fixed Income Weekly (November 23, 2015)

Ukraine Fixed Income Weekly (November 16, 2015)

Eurobonds overview

The restructuring of Ukraine’s Eurobonds was completed last week, leaving only the so-called Russian Eurobond due in December 2015 untouched. As a result of the operation, the Finance Ministry issued nine new notes maturing in 2019-2027. The new medium-term notes maturing in 2019-2022 were traded with a yield to maturity of about 9.1% at a current price of 94-95 cents. The longer-term Eurobonds maturing in 2023-2027 were traded with a yield to maturity of 9.0% at a current prices of about 91.5 cents. In our view, the price movements on Ukraine’s Eurobonds were determined by market perception of the potential return on the accompanying GDP-warrant derivatives, most likely betting on the earlier stage of the period when the clause s of the GDP warrant take effect.

Read more: Ukraine Fixed Income Weekly (November 16, 2015)

Ukraine Fixed Income Weekly (November 9, 2015)

Eurobonds overview

Ukraine’s Eurobond prices remained unchanged last week. Ukraine-15 traded at 82.8 cents, and Ukraine-16 at 78.9 cents. Ukraine-17, Ukraine-21, and Ukraine-22 traded at an average of 79.4 cents, whereas  Ukraine-20 and  Ukraine-23 were traded at 80.9 cents on average. Trades in Ukraine’s Eurobonds were on hold as the Ukrainian Finance Ministry announced the final settlement of the Eurobond exchange operations for November 12, 2015.

Read more: Ukraine Fixed Income Weekly (November 9, 2015)

Ukraine Fixed Income Weekly (November 2, 2015)

Eurobonds overview

Ukraine’s Eurobond prices continued generally gaining last week. The prices of Ukraine-15 and Ukraine-20 remained unchanged at 82.8 cents and 81.2 cents respectively. Ukraine-16, Ukraine-17, and Ukraine-22 gained 0.5 cents on average and were traded at 78.9 cents, 79.5 cents, and 79.8 cents. Ukraine-21 gained 0.1 cent and traded at 79 cents, whereas Ukraine-23 increased by 1.4 cents and was traded at 80.5 cents. In our view, the prices of Ukraine’s Eurobond continued anticipating the forthcoming finalization of the exchange of the notes, announced by the Finance Ministry for November 12, 2015. We think that high interest in the GDP-linked warrants conditioned the stronger price gain for the longer-term Eurobonds, coming to maturity during the period, when the warrants take effect. In the meantime, the lack of changes on the prices of the short-term debts may reflect the uncertainty around the December 2015 Eurobonds (Russian notes).

Read more: Ukraine Fixed Income Weekly (November 2, 2015)