Page 57 - UKRRptSept20

8.5 ​Fixed income
Foreign investors are still selling out of the Ukraine OVDP treasury bonds. ​The share of non-resident investors in the workhorse Ministry of Finance bond has fallen to 10.1% from a peak of 15.7% in February.
That will cause problems for the Ministry which intends to use the bond to plug much of the budget deficit this year by tapping the domestic bond market.
8.5.1​ Fixed income - bond news
Ministry of Finance raised raised the equivalent of $370mn at its first auction in August, ​slightly less than a week earlier, the Finance Ministry reported on Facebook. Yields were unchanged: 6 months – 7.74%; 1 year – 9.2%; and 2 years – 10.25%.
Ukraine’s largest pipe and railway wheel producer​ ​Interpipe​ redeemed at par $97mn of its 2024 notes ​on August 25, according to the company’s release on the same date. After this early redemption, which Interpipe announced on August 14, the amount outstanding of INTHOL’24 notes is $113.7mn, according to the release. In January Interpipe redeemed $98.5mn of its INTHOL’24 notes. Interpipe will save about $10mn per year in interest payments on the expensive (10.25% per year) notes due to this redemption, which is positive.
57​ UKRAINE Country Report​ September 2020 ​ ​www.intellinews.com