Ukrainian bonds rally amidst hopes of reduction in Russian invasion threat

16 February 2022, 06:35 PM

Kyiv’s Eurobonds on Feb. 15 reversed a five-day downward trend and rallied somewhat as the geopolitical risks facing Ukraine were seen as diminishing, Ukrainian news agency Interfax-Ukraine reports.

Dollar-denominated Ukrainian Eurobonds went up by 2.7%-3.7% due to encouraging news hinting at an easing of tensions between Russia and Ukraine.

This rally did not fully offset the slump Ukraine’s borrowing instruments have experienced since Feb. 10, when major Western countries started to evacuate their citizens from Ukraine, fearing an imminent Russian invasion.

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Here are the yields of bonds of various maturity dates on Feb. 15, compared to the previous day:

·         September 2022 maturity – 16.8%, down from 22.1%.

·         2023-2024 maturity – 13.4%, down from 15.3%.

·         2026 maturity – 11.5%, down from 12.4%.

·         2027-2029 maturity – 10.8%, down from 11.5%.

·         2032-2033 maturity – 10.2%, down from 10.7%.

Two EUR-denominated Eurobond issues have grown by 2.5%-3.1% on the same day, leading to yields of bonds maturing in 2026 declining from 12.5% to 11.8%, and of those maturing in 2030 – from 9.1% to 8.6%.

Ukraine’s GDP-linked bonds grew by 5.6%, to 72.7% of their nominal value.

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