Page 59 - UKRRptJul19

8.5 Fixed income
The hook up of Ukraine’s bond market to the Clearstream international payments and settlements system is turning out to be a stunning success.
The share of non-residents holding Ukraine local bonds topped 7% at the start of June and shows no sign of slowing down.
Foreigners owned 7.3% of the outstanding hryvnia-denominated bonds or UAH56.2bn ($2.1bn), which already meets the borrowing plan for domestic issues sold to foreigners for this year. The total volume of hryvnia-denominated bonds issued this year was UAH772.8bn ($29.4bn) as of June 27.
The hook up looks like it will become a significant new source of funding for the government, which faces a debt mountain this year.
Bond market to
8.5.1 Fixed income - bond news
Ukraine’s battered state-owned railway monopoly Ukrzaliznytsia is attempting to issue three- or five- year Eurobonds again after a failed bid earlier this year and will launch an international road-show on June 26, according to Interfax Ukraine. On June 25, Fitch Ratings confirmed Ukrainian Railway's plans, awarding a B- expected rating for the issue. The new bond is expected to be issued in late June or early July, according to the rating agency. Alexander Paraschiy at Kyiv-based brokerage Concorde Capital believes that the monopoly needs foreign currency funding to smoothly pay its $150mn amortisation on its existing Eurobond in September, so the company’s
59 UKRAINE Country Report July 2019 www.intellinews.com