Page 50 - UKRRptApr21

8.5 Fixed income
In the first two months of this year, foreign holdings of Ukraine government bonds increased by $570mn. As of March 1 , foreign holdings totalled $3.65bn. He said: "In February, non-resident investors continued to grow their portfolio, with a slowdown in the second half of February.”
8.5.1 Fixed income - bond news
With Big Construction needing at least $1bn in additional funding this year, one goal of the EBRD-Ukravtodor partnership is to create by this summer a joint stock company within Ukravtodor capable of generating capital by issuing infrastructure bonds. With international demand strong for Ukraine hryvnia bonds, planners believe foreign demand could extend beyond paying for international highways to pay for regional roads. Last year, the Cabinet of Ministers extended $840mn in state guarantees to Ukravtodor. The agency sold $500mn worth of bonds to three state banks – Ukreximbank, Ukrgasbank, and Oschadbank.
Foreign investors are to get the chance to invest in the government’s massive spending by buying sovereign-backed infrastructure bonds in a new $3bn state fund, reports Ukravtodor, the state highway agency. Under development with the EBRD, the state fund would be subject to international arbitration, and would have an independent supervisory board. To get Ukravtodor in shape for foreign investment, 30 EBRD specialists are working at the agency to put all tenders on line and ensure that procurement follows Western standards.
50 UKRAINE Country Report April 2021 www.intellinews.com