Ukrainian Bonds: Commercial Issuers Announce Placements Plans

Trading update

Ukrainian Eurobonds continued to enjoy firm demand last week, reflecting investors’ positive assessment of Ukrainian risk amid the post-election power transition. Ukraine 11s were steady at 98.0/99.5 while 13s moved up to 98.0/99.5 (+300bp w-o-w) and 17s to 87.75/89.25 (+225bp). Naftogaz 14s finished at 98.25/99.25 (+275bp). Quasi-sovereigns rallied also with Ukreximbank 11s quoted at 96.0/98.0 (+200bp) and 12s at 92.0/94.0 (+250bp). Commercial bank debt also strengthened: Alfa Bank Ukraine 12s at 98.0/100.0 (+150bp), Finance & Credit Bank 14s at 77.0/80.0 (+150bp). VAB Bank bonds surged to 84.0/88.0 (+600bp) after the issuer announced its restructuring offer.