Ukraine Fixed Income Weekly (January 4, 2016)

Eurobonds overview

Ukraine’s Eurobond prices gained 0.2 cents on average last week. Ukraine-19 traded at 93.9 cents, Ukraine-20 at 92.5 cents, Ukraine-21 at 91.9 cents, Ukraine-22 at 90.9 cents, Ukraine-23 at 89.9 cents, Ukraine-24 at 88.0 cents, Ukraine-25 at 88.9 cents, Ukraine-26 and Ukraine-27 at an average 87.4 cents. In our view, Ukraine’s Eurobonds’ prices enjoyed support from the news about a positive development in the country’s cumulated budget deficit, and anticipation of the introduction of the free trade zone between the country and the European Union on January 1, 2016.

Ukraine Fixed Income Weekly (December 28, 2015)

Eurobonds overview

All Ukraine’s Eurobond prices lost 0.3 cents on average last week. Ukraine-19 traded at 93.6 cents, Ukraine-20 at 92.3 cents, Ukraine-21 at 91.6 cents, Ukraine-22 and Ukraine-23 at an average 90.1 cents, Ukraine-24 and Ukraine-25 at an average 88.4 cents, and Ukraine-26 and Ukraine-27 at an average 87.2 cents. In our view, the country’s Eurobond prices were dragged by the  uncertainties as to the compliance of the country’s 2016 budget and tax reforms with the IMF requirements, threatening to derail the Extended Fund Facility program for Ukraine. Additionally, a visible tension inside the government ruling coalition nurtured concerns as to the near-term stability of the Government.

Ukraine Fixed Income Weekly (December 21, 2015)

Eurobonds overview

All Ukraine’s Eurobond lost on average 1.4 cents on average in price  last week, save the Ukraine-22 which incurred a minor lost of 0.4 cents. Ukraine-19 was traded at 93.6 cents; Ukraine-20, Ukraine-21, Ukraine-22 in the range of 92 cents; Ukraine-23, Ukraine-24, Ukraine-25 at 89.0 cents on average; and Ukraine-26 and Ukraine-27 were traded at 87.5 cents on average. The Eurobond prices were slightly depressed by the negative news about the ongoing discussions concerning the 2016 budget and tax reforms, which prompted a warning from the IMF as to the outlook of the financial assistance to the country from the side of the international financial institutions. At the same time, the IMF classification of the country’s debt to Russia as an official one has also raised concerns that the country might be obliged to repay the debt.

Ukraine Fixed Income Weekly (December 14, 2015)

Eurobonds overview

 All Ukraine’s Eurobond lost in price on average 0.4 cents last week, save the long-term Ukraine-26 and Ukraine-27 which lost 1.3 cents on average and were traded at 89.0 cents. The short-term Ukraine-19, Ukraine-20, and Ukraine-21 traded at an average 93.9 cents, whereas the medium-term  Ukraine-22, Ukraine-23, Ukraine-24, and Ukraine-25 traded at an average 90.8 cents. Notwithstanding the supportive effect of the IMF decision to change its lending rule virtually in favor of Ukraine,  together with the news about creditors’ support to the restructuring of the Kiev City Eurobonds, the uncertainties about the disbursement of the next IMF credit tranche to the country, on background of increasing risks of political instability in connection with the discussions about tax reforms, 2016 state budget, and threat of no-confidence vote to the government have restrained the Eurobond price development.

Ukraine Fixed Income Weekly (December 2, 2015)

Eurobonds overview

 All Ukraine’s Eurobond prices lost in price last week. The short-term Ukraine-19. Ukraine-20, and Ukraine-21 lost 2.6 cents on average and were traded at 95.4 cents, 94.2 cents, and 93.1 cents respectively. The medium-term Ukraine-22, Ukraine-23, Ukraine-24, and Ukraine-25 lost 3.3 cents on average and were traded at 92.2 cents, 91.6 cents, 90.4 cents, and 90.9 cents correspondingly. The long-term Ukraine-26 and Ukraine-27 lost 2.6 cents on average and were traded at 90.3 cents on average. We think that the development might have mirrored the uncertainties which occurred around the next tranche of the IMF financial assistance to the country, on background of complicating relations with Russia, and concerning news from the eastern Ukrainian war zone.