May 07, 2018 | Cbonds
|Ukrainian sovereign Eurobonds declined in value amid a broad sell-off after Fitch Ratings assigned a ‘B-’ Long-Term Foreign-Currency Issuer Default Rating for the country which was at least one notch below expectations. The rating agency highlighted Ukraine’s high public debt burden and structural weaknesses.|
In other news, there was information that unusually hot and dry weather across almost all Ukrainian regions has not yet damaged grain crops but there is no reason to expect a bumper harvest of early spring grains this year. Ukraine is expected to harvest around 62mn tonnes of grain in 2018.
The country’s longest outstanding Eurobonds, Ukraine-32s, dropped by 2.8% to 89.7/90.7 (8.6%/8.5%) and the shortest outstanding issue maturing in 14-months sank 0.8% to 102.6/103.1 (5.7%/5.3%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) lost 0.7% to close at 67.1/68.1 cents on the dollar.
Debt papers of steel&mining group Metinvest with maturity in 2026 placed in April decreased by 1.4% to 95.2/96.1 (9.4%/9.2%). Metinvest-21s plunged by 3.9% to 100.0/102.0 (7.4%/6.8%). DTEK-24s declined by 1.0% to 106.3/107.3 (9.4%/9.2%) and Kernel-22s slipped by 1.9% to 102.5/103.4 (8.0%/7.7%).
Low liquidity Eurobonds of E&P company JKX Oil&Gas with maturity in 2020 ignored announcement that the company returned to drilling in Ukraine after an almost three-year break. The issue were unchanged at 85.0/95.0 (24.8%/17.3%).
Quasi-sovereign Eurobonds of state banks again lagged performance of the sovereign issues. OschadBank-25s shed by 1.2% to 103.8/104.7 (9.0%/8.8%) with a prospect of further decline this week. The bonds did not react on the bank’s 1Q18 financial report.
|Status||Country of risk||Redemption (offer)||Volume||Issue Rating (M/S&P/F)|
|outstanding||United Kingdom||02/19/2020||10,720,000 USD||-/-/-|
Company: JKX Oil & Gas
|Full company name||JKX Oil & Gas PLC|
|Country of risk||United Kingdom|
|Country of registration||United Kingdom|
|Industry||Chemical and petrochemical industry|