Fixed Income

September 07, 2020

Quotes for Ukrainian sovereign Eurobonds were firmly higher last week after the country’s foreign currency issuer rating was raised from B to B+ with a stable outlook by Japanese credit rating agency Rating and Investment Information (R&I). The agency noted that Ukraine’s financial support from the IMF, along with loans from the World Bank and the EU, will help stabilize the government’s funding. Also, investors cheered the fact that the Finance Ministry redeemed the second series of Eurobonds issued during the country’s sovereign restructuring in 2015. The total amount of the on-time redemption & servicing was more than USD 2 bn, including the USD 1.69bn Eurobond redemption and some USD 400mn in interest coupon payments on the outstanding bonds maturing in 2021-2027. Ukraine’s residual foreign currency payments on public debt remaining during 2020 amount to around USD 1.6bn.