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 places USD 170 mln in local 2Y bond at 5.40% rate

October 25, 2017 | Cbonds

Ukraine’s Finance Ministry reported on Oct. 24 that it raised USD 170 mln from the placement of local two-year, USD-denominated bonds at an average yield of 5.40%. The ministry accepted six out of seven total bids for USD 175 mln. MinFin has scheduled the next placements of the two-year local Eurobonds for Nov. 21 and Dec. 19.

Alexander Paraschiy: While the nominal rate of the just-placed Eurobonds was comparable to the rates of two-year bonds placed in July (5.34%) and August (5.40%), this was the first time this year when MinFin’s rate at placement was above the international Eurobond curve (at a positive spread of 57 bps). The spread was negative at the previous two placements (-29 bps in July and -35 bps in August). And the size of the placement was half as much this time than in August. That clearly points to decreasing domestic demand for USD-denominated bonds.

Most likely, the raised funds will be directed to repay Ukraine’s debt to the IMF under an earlier standby program due in early November (about USD 440 mln). The next two scheduled placements will likely aim at accumulating dollar liquidity to repay another tranche to the IMF in early December (about USD 160 mln) and repay local Eurobonds due in late November and December (total about USD 650 mln).

But given the small size of the latest placement, it looks like Ukraine will have to spend some of its gross reserves on repaying these loans, which could mean Ukraine’s reserves may fall by end-2017 from the level of USD 18.6 bln as of end-September. The IMF’s possible tranche of USD 1 bln could help to restore reserves, but its likelihood by the year end is decreasing each day.


Emission: Ukraine, 199244 USD 23oct2019

StatusCountry of riskRedemption (offer)VolumeEmission Rating (M/S&P/F)
outstandingUkraine10/23/2019170,314,000 USD-/-/B-

Company: Ukraine

Full company name
Country of risk

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