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Weekly Lists
July 28, 2017 www.intellinews.com I Page 27
bne:Credit
London court prolongs suspension of its judgement on Ukraine's $3bn debt held by Russia
Hungary sells CYN1bn Panda bond
The High Court of Justice in London has accepted Kyiv’s position during hearings on $3bn Eurobonds held by Moscow, the Ukrainian finance ministry said on July 25. The court granted a further suspension of its March ruling until Ukraine’s appeal has been concluded, which would not be before 2018.
In late March, the High Court in London ruled that it would not be right for a $3bn Eurobond case brought by Russia against Ukraine to go to full trial since Kyiv has no “justifiable defence” for its failure to redeem the notes in December 2015.
The court also confirmed, “contrary to efforts by Russia” to impose onerous conditions upon Ukraine’s appeal rights, that unconditional permission has been given to Ukraine to appeal against the judgment to the court of appeal.
Hungary’s Government Debt Management Agency AKK announced on July 26 that it has successfully sold CYN1bn (€130mn) in three- year yuan-denominated bonds on China's interbank bond market.
The sale makes Hungary the first sovereign issuer of Panda bonds this year, and only the third after Poland and South Korea sold renminbi bonds on the onshore Chinese market last year. The move is in line with the government's policy in recent years to try to cement ties with Beijing and open up to markets to the east. It also helps to diversify Hungary’s debt portfolio.
Preparations for the panda bond began after Hungary sold a CNY1bn three-year dim sum bond issue, the first by a CEE country, in April 2016.
Turkey is preparing to raise its debt limit for the first time since 2009 after first-half borrowing left the Treasury near its legal ceiling, Bloomberg reported on July 25.
The Treasury’s debt limit can be hiked by 10% with government approval but that any increase above that requires a change in the law, the newswire reported, citing a person with direct knowledge of the plans to change the law for 2017 debt by the end of the year.
Turkey reportedly set to raise debt limit for first time in 8 years as Ankara fuels credit