Page 48 - UKRRptMar20

S&P last upgraded Ukraine’s rating from Caa2 (positive) in August 2017. The rating nadir was Ca (negative) awarded in March 2015 following the Maidan events. Its zenith was B1 (positive) awarded in August 2008 at the apex of the region-wide boom.
8.5 ​Fixed income
Foreign investor holdings of Ukraine government hryvnia bonds hit $5bn at the start of February​, the Finance Ministry reports. In January, foreigners bought UAH7.2bn, or $287.5mn, of the bonds. Foreigners now hold 15% of the bonds, a level not seen as risky. Last year, Ukraine’s Finance Ministry auctioned government domestic loan bonds worth the dollar equivalent of $11.5bn -- 3.5 times more than the amount sold in 2018.
The market collapse at the end of February that followed the outbreak of coronavirus in Italy has also pulled down the value of Ukrainian securities.​ Ukraine’s GDP-warrants fell by 8.5%, to 99.1% of the nominal value. Yield on Eurobonds grew on average by one percentage point. Interfax-Ukraine reports that Ukrainian Eurobonds with maturity in 2021 were quoted Friday evening at a rates of 4%; in 2023, about 5%; in 2026, at 6%; and the longest, with maturity in 2032, at 6.5%.
8.5.1​ Fixed income - bond news
Vodaphone Ukraine placed $500mn worth of 5-year Eurobonds at 6.2% per annum,​ reports Interfax-Ukraine. Reflecting strong foreign investor demand for Ukrainian bonds, the placement was six times oversubscribed, with $3bn in demand. In addition, the yield was 300 basis points below a
48​ UKRAINE Country Report​ March 2020 ​ ​www.intellinews.com