Page 61 - UKRRptOct20

8.5 ​Fixed income
Justifying Ukraine’s recent stealth re-purchase of 10% of its $3.2bn in GDP-linked warrants, Finance Minister Sergiy Marchenko confirmed that the 2015 warrants are a financial time bomb that could cost the nation up to $22bn by 2040.​ With current GDP growth forecasts, Ukraine will have to make its first pay out - $40mn – next year. By 2023, payments could balloon to $600mn. Speaking to the Rada Committee on Finance, Tax and Customs Policy, he justified the stealth operation saying: “After the end of the operation, we removed the "secret" stamp and, as a result of the publication of this information, the prices for GDP warrants jumped by 8%.”
8.5.1​ Fixed income - bond news
The National Anti-Corruption Bureau has asked banks to provide information on foreigners buying and selling domestic government bonds last year, ​several market participants told Interfax-Ukraine. One source said the Bureau wants to know if the yields were ‘overestimated.’ With some hryvnia bond rates going as high as 19.5%, foreign purchases increased 18-fold, ending the year at 116bn hryvnia, almost $4.9bn. This year, foreign holdings grew another 10%, until the corona crisis hit in March. Today, foreigners hold 85bn hryvnia, or $3bn.
Ukraine’s largest pipe and railway wheel producer​ ​Interpipe​ will redeem at par $32.4mn of its 2024 notes on October 5, ​according to the company’s September 25 announcement filed with the Luxembourg stock exchange.​ ​After this early redemption, the amount outstanding of INTHOL’24 notes will be $81.3mn, according to Concorde Capital calculations.​ ​Recall, Interpipe
61​ UKRAINE Country Report​ October 2020 ​ ​www.intellinews.com