Contact us (+ 7 (921) 446-25-10)
×
Texting is available for authorized users.
Please register or log in at the website.
×
Your request for online training is sent. Cbonds managers will be in touch with you shortly. Thank you!

Concorde Capital Research: Ukraine central bank confirms completion of local state debt restructuring

October 10, 2017 | Cbonds

The National Bank of Ukraine reported on Oct. 9 it completed the restructuring of UAH 219.6 bln in local currency sovereign bonds it holds. Of the total amount, UAH 74.4 bln in bonds will have a fixed coupon rate and UAH 145.2 bln will have a rate linked to inflation. The restructuring “will facilitate a balanced fiscal policy consistent with the NBU's goals of ensuring low and stable inflation,” according to the central bank.

Recall, MinFin reported on Oct. 4 it agreed to the key conditions of restructuring these bonds with the extension of their maturity from 2017-2030 (with over 70% of bonds maturing in 2017-2020) to 2025-2047, with a relatively uniform annual repayment schedule. The new bonds maturing in 2025-2035 have a fixed coupon rate of 8.12%-11.30%, with the longer bonds’ coupons equal to trailing CPI plus 2.2pp.

Alexander Paraschiy: After the central bank's comments, we can state with certainty the deal is done. Recall, the previous restructuring deal, nearly agreed upon in May 2017, was unexpectedly cancelled in August.

While we see little fiscal effect on the deal beyond 2017, we agree with the central bank that it will allow it to target inflation more efficiently. In particular, we see that high inflation of the last year, which exceeded the NBU’s expectation, was partially the result of state policy, in which some regulated prices were adjusted. In the future, the government will be interested in minimizing inflation (to save some interest expenses), so, theoretically, it will be more cooperative with the NBU in its goal to control prices.


Company: Ukraine

Full company nameUkraine
Country of riskUkraine

Share:

Similar news:
minimizeexpand
150 000
issues: local and international bonds
170
countries
+7 812 336 97 21
pro@cbonds.info
150 000
issues: local and international bonds
170
countries
Сbonds is a global Fixed income data platform
+7 812 336 97 21
pro@cbonds.info
Data
  • Descriptive data on bonds
  • Bond Quotes from trading systems and market participants
  • Prospectuses and other issue documents
  • Credit ratings
  • Indices and indicators
  • Market news and analytical research
Analytical instruments
  • Multi-parameter bond database search
  • Bond Maps
  • Market calendar
  • Bond calculator
  • Watchlist and Portfolio management
  • Chart analysis
  • Mobile App and Excel Add-in Tool
Enter or RegisterSubscription/Trial access