Fixed Income

June 11, 2018

Ukrainian sovereign Eurobonds ended moderately higher last week as investors cheered the fact that the country got a bit closer to receiving a new USD 1.9bn loan disbursement from the IMF after Parliament adopted a required law on creation of a special anti-corruption court. The IMF is still working toward the completion of the fourth review of its USD 17.5bn support program for Ukraine, which depends on the implementation of several key items, one of which is a strong and independent anti-corruption court. Parliament Speaker Andriy Parubiy said the so-titled High Anti-Corruption Court could be set up by the end of 2018, with the first cases to be considered next year. The benchmark issue, Ukraine-27s, inched up 0.2% to 96.6/97.6 (8.3%/8.1%) and medium-term Ukraine-23s climbed by 0.4% to 100.7/101.5 (7.6%/7.4%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) were almost flat at 69.0/70.0 cents on the dollar.