Page 53 - UKRRptNov20

not appreciate what they are seeing on the reform front, and that changes need to be made,” Ash writes in an emailed analysis. “I just wonder here how many investors would actually want to continue to finance Ukraine if they thought the current IMF program was not going anywhere, which is kind of the reality at this stage.”
8.5.1​ Fixed income - bond news
Naftogaz​ of Ukraine (NAFTO) decided on October 19 to postpone indefinitely the placement of a new eurobond maturing in February 2027​, Interfax-Ukraine reported the next day, citing its sources on the market. Earlier on October 19, Interfax reported the expected yield on the new eurobond was in the range of 9.00%-9.25%. Later on, Bloomberg reported the final yield was going to be 8.95%, far above the coupon rate on the notes that Naftogaz was going to refinance (7.375% and 7.125%).
Ukraine’s State Export-Import Bank offered on October 26 to purchase part of its notes due in January 2025 and April 2022 for up to $300mn. The bank is offering to purchase up to $200mn of its 2025 notes (of the $600mn total amount outstanding) at 101.5% of par and up to $100mn of the 2022 notes (of the $188mn total as of October 27) at 100.75% of par. The bank said it will prioritize the purchase of the 2025 notes. It is offering a 3% of par early tender premium for each bond for those agreeing to sell their notes before the early tender deadline of November 6. The ultimate deadline for the tender is November 23. The bank stated that the purpose of the debt operation is the optimization of its liability portfolio and the reduction of its total cost of debt. As of September 1, the bank has foreign currency cash of $22mn and foreign currency deposits in other banks in the equivalent of $1.14bn. Its foreign currency debt amounted to the equivalent of $1.75bn. The bank’s 2025
53​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com