10 Февраля 2020

Quotes for Ukraine’s sovereign Eurobonds saw a big rebound last week after their brief downturn seen in late January. General investor optimism in regard to emerging markets helped the momentum. Governments and companies from developing countries embarked on a record borrowing spree last month, locking in very attractive interest costs. EUR-denominated debt issuance from EMs has been particularly strong, rising to EUR 17bn in January from EUR 6bn a year ago. Ukraine’s Finance Ministry placed 10-year Eurobonds last month at 4.375% in the amount of EUR 1.25bn. These bonds are trading near par - 99.9/100.7 (4.4%/4.3%). The medium-term benchmark Ukraine-24s jumped by 5.7% to 115.7/116.4 (4.7%/4.5%), while the longest outstanding Ukrainian debt papers, which are due in 2032, rose 1.2% to 109.3/110.1 (6.2%/6.1%). The VRI derivatives (linked to Ukraine’s future GDP growth with expiration in 2040) did not join the rally, slipping 0.3% to close at 99.0/100.0 cents on the dollar.