On Wednesday, March 9, the prices of Ukrainian U.S. dollar-pegged eurobonds rose by another 4.5-10%, and in general since last Friday their growth reached 20-43%.
According to Bloomberg, the price of the shortest bonds maturing in September 2022 at the end of Wednesday was 45.4% of par, which corresponds to a yield to maturity of 270.9% per annum, while at the end of last week the rate reached 362.4%.
Eurobonds maturing in 2023 were quoted at a rate of 86.4% per annum, in 2024 – 68.5% per annum, in 2025 – 50.6% and in 2026 – 43.8%.
Rates on securities maturing in 2027-2028 fell to 39-40% versus 49-51% last Friday, and on longer-term bonds maturing in 2029-2031 they amounted to 32.6-28.1%, while their price was equal to 30% of the nominal versus 21.8% at the end of last week.
Euro-pegged bonds maturing in 2026 were quoted with a yield of 46%, in 2030 – 26.2%.
The rate of VRIs rose by 7.5% on Wednesday, and by 54.5% since Friday, and now stands at about 22.8% of the nominal value.
Ukraine is to place an additional $500 million 2029 eurobonds at 6.3%, a banking sector source told Interfax.
Initial yield guidance for the additional tranche maturing in 2029 was 6.625%. During book building, Ukraine was able to reduce the yield, with final guidance set in the range of 6.3%-6.4%.
Demand for the country’s eurobonds exceeded $1.8 billion at its peak, and stood at about $1.7 billion in final bidding.
BNP Paribas and Goldman Sachs are the organizers of the deal.
Ukraine placed $1.25 billion in eurobonds maturing in 2029 in April of this year at a coupon rate of 6.876%.
On 30 April 2021, Ukraine announced the successful settlement of its new $$1.25 billion eurobonds due 2029 placed with a yield of 6.875%.
“The proceeds were transferred to the account of the State Treasury of Ukraine and will be used for general budgetary purposes,” the ministry said.
According to the report, the notes will be admitted to trading on London Stock Exchange’s main market on 4 May 2021. This is an inaugural listing of Ukraine’s sovereign bonds on London Stock Exchange. Earlier Ukraine’s notes were listed on the Irish Stock Exchange.
The ministry said that the notes were issued with a yield of 6.875%, receiving bids in excess of $3.3 billion from 223 investors. The investor base of the new issuance was dominated by asset managers, which accounted for 84% of the notes issued and followed by hedge funds (9%), insurance and pension funds (5%) and banks (2%).
Investors from the United Kingdom, the United States and continental Europe generated the majority of demand in the new eurobond’s primary offering with 42%, 34% and 21% of allocations, respectively. Investors from Asia and MENA amounted to 3% of the allocations.
BNP Paribas, Deutsche Bank, Goldman Sachs International and J.P. Morgan acted as joint bookrunners.
Government Commissioner for Public Debt Management Yuriy Butsa said that despite returning to the fiscal consolidation path, Ukraine’s financing needs are still high compared with the previous years. As a part of our debt management strategy, the decision was made to cover most of those needs from the local market and in national currency.
“Having successfully implemented this strategy in Q1, we returned to the international capital markets after their stabilization in order to cover part of our FX needs for this year. We are glad that in the less favorable market environment for the emerging economies, markets still remain accommodating for issuers with a track record of prudent fiscal and monetary policies and proactive engagement with the investor community,” he said.
On 30 April 2021, Ukraine announced the successful settlement of its new $$1.25 billion eurobonds due 2029 placed with a yield of 6.875%. “The proceeds were transferred to the account of the State Treasury of Ukraine and will be used for general budgetary purposes,” the ministry said.
According to the report, the notes will be admitted to trading on London Stock Exchange’s main market on 4 May 2021. This is an inaugural listing of Ukraine’s sovereign bonds on London Stock Exchange. Earlier Ukraine’s notes were listed on the Irish Stock Exchange.
The ministry said that the notes were issued with a yield of 6.875%, receiving bids in excess of $3.3 billion from 223 investors. The investor base of the new issuance was dominated by asset managers, which accounted for 84% of the notes issued and followed by hedge funds (9%), insurance and pension funds (5%) and banks (2%).
Investors from the United Kingdom, the United States and continental Europe generated the majority of demand in the new eurobond’s primary offering with 42%, 34% and 21% of allocations, respectively. Investors from Asia and MENA amounted to 3% of the allocations.
BNP Paribas, Deutsche Bank, Goldman Sachs International and J.P. Morgan acted as joint bookrunners.
Government Commissioner for Public Debt Management Yuriy Butsa said that despite returning to the fiscal consolidation path, Ukraine’s financing needs are still high compared with the previous years. As a part of our debt management strategy, the decision was made to cover most of those needs from the local market and in national currency.
“Having successfully implemented this strategy in Q1, we returned to the international capital markets after their stabilization in order to cover part of our FX needs for this year. We are glad that in the less favorable market environment for the emerging economies, markets still remain accommodating for issuers with a track record of prudent fiscal and monetary policies and proactive engagement with the investor community,” he said.
DTEK Energy has agreed on the terms of restructuring eurobonds and the major bank debt with the committees of creditors-holders of eurobonds and banks, the group’s press service has said.
The company notes that the completion of restructuring will ensure the stable operation of the company in the long term, flexible debt service mechanics, taking into account financial forecasts and an unstable external conjuncture.
DTEK’s Strategy and Finance Director Oleh Tymkiv, whose comment is given in the report, indicated that DTEK was building the negotiation process “as a reliable partner fulfilling its obligations.”
“This allowed to maintain constructive relations and balance the company’s loan servicing capabilities and continue its development,” he stressed.
According to him, during the negotiation process, DTEK was able to make sure that the creditors fully understand the consequences of the crisis caused by the COVID-19 pandemic, both on the country’s economy and on the energy industry.
“This was reflected in their balanced constructive position, aimed primarily at finding a compromise solution. As a result, we managed to reach the best conditions for both sides of the new agreement,” Tymkiv summed up.
Ukrainian agricultural holding Kernel, which announced about a buyout of 2022 eurobonds for up to $350 million on October 5, received applications for a total sum of $285.89 million by the term of early deadline and decided to satisfy all of them, according to the company’s report on the exchange on Tuesday, October 20.
These debut eurobonds of the agricultural holding were issued in January 2017 for five years for $500 million at 8.875% with a coupon of 8.75%. The purchase price was set at 105.625%.
At the same time, Kernel announced issuing eurobonds in the amount of approximately $300-350 million for a period of five or seven years. The organizers of the issue are JPMorgan, Credit Agricole и Natixis.
“The purpose of the tender offer is to proactively manage and lengthen the structure of the group’s debt by maturity by refinancing part of the bonds with new bonds with a longer maturity,” the report says.
The company confirmed that the early settlement is October 29. The deadline for accepting applications for exchange is November 2, however, after the early deadline, the settlement price is 102.625%. The final settlement date is November 5.
The redeemable Kernel eurobonds at the end of the day on October 19 were quoted at the rate of 105.544% of the face value, which corresponded to profitability of about 4.229%.
