Page 51 - UKRRptJune18

"This law is a breakthrough for the local securities market, as it indeed will make local securities much more accessible to non-residents, who currently have to spend three-six months to open individual accounts if they want to invest in Ukrainian stocks and bonds" Alexander Paraschiy at Kyiv-based brokerage Concorde Capital believes.
New legislation should significantly improve liquidity on the local securities market, particularly local government bonds, which are far more attractive than equities at the moment, the expert wrote in a research note on May 15.
"If demand from non-residents increases for local government bonds, the rate of short-term bonds will decrease from 17%, which is now supported by the rate of two-week certificates of deposit (the alternative investment for local banks who are the main players on domestic bond market)," Paraschiy added.
According to the estimates of Ukraine’s National Depository, the legislation's adoption will lead to up to UAH100bn ($3.8bn) in increased exposure of international investors to local government bonds in the mid-term.
8.4 International ratings
8.5 Fixed income
8.5.1 Fixed income - bond news
Ukraine - Rating agency
as of Jan 2018
Bond rating: Moodys
Caa2 (P)
Bond rating: Fitch
B- (S)
Bond rating: S&P
B- (S)
Ukraine's biggest egg producer Avangardco won’t make a scheduled coupon payment on its $200mn Eurobond this month , the company reported on May 2. The missed payment under AVINPU notes, as well as two missed semi-annual payments in 2017, will be a part of debt restructuring talks, according to the company. The move followed Avangardco's suspended coupon payments on its Eurobonds in 2017. Avangardco's parent company Ukrlandfarming also suspended coupon payments the same time. In 2017, the companies announced the initiation of debt restructuring talks that were expected to be completed very soon. However, the debt restructuring talks of these companies, all controlled by Ukrainian businessman Oleg Bakhmatyuk, are being delayed.
O1 Group of Russian businessman Boris Mints continues to struggle with its outstanding bonds , with the Moscow Exchange transferring the bonds of O1 Group Finans issuer to default trading mode, Vedomosti daily said on May 22. Earlier in May O1 could not fulfil the mandatory payout offer on its RUB14bn ($222mn) worth of bonds maturing in April 2027 after
51 UKRAINE Country Report June 2018 www.intellinews.com