Eurobonds of Ukraine on Tuesday rose by an average of 14.4% on news of the results of negotiations between Kyiv and Moscow in Istanbul: if securities maturing in 2023 and 2024 grew in price by 10.6% to 12.5%, then growth prices of shorter and longer ones reached 17.2% and 16.6%, respectively.
According to Bloomberg at 19.00, the price of the shortest bonds maturing in September 2022 jumped by 17.2% to 62.4% of par, which corresponds to a yield to maturity of 154.7% per annum, while the previous day the rate was 221.6%.
Eurobonds maturing in 2023 were quoted at a rate of 62.1% per annum as a result of the rise in price, some 48.9% per annum in 2024, some 36.9% in 2025 and some 31.2% in 2026.
Rates on securities maturing in 2027-2029 fell to 27.7% to 22.8% against 31.5% to 26.2% a day earlier.
The yield of the “longest” securities maturing in 2032 and 2033 fell on Tuesday by 3.0 to 2.9 percentage points (p.p.) to 20.1% to 19.5% per annum.
Eurobonds maturing in 2026 were quoted with a yield of 33.8%, some 18.2% in 2030, which is 4.9 p.p. and 2.9 p.p. less than the day before.
The rate of GDP warrants on Tuesday jumped immediately by 20.6% and at 19.00 Tuesday was about 33.3% of the nominal value.
Positive results were also recorded for Ukrainian corporate eurobonds. In particular, MHP securities maturing in 2024, for which the issuer is now collecting holders’ consent for a 270-day deferral of the next coupon payment, rose by 10.7%, while their yield fell from 63.2% to 56.3%.
Eurobonds of DTEK RES with maturity also in 2024, according to information on the website of the Frankfurt Stock Exchange, increased in price by 2.25%, and their rate dropped to 76.4% per annum.
Following the talks in Istanbul, Turkish Foreign Minister Mevlüt Çavuşoğlu said that the delegations of Ukraine and Russia managed to achieve convergence of positions on some issues, and more complex topics will be discussed at the next rounds of negotiations between the Foreign Ministers of Russia and Ukraine.
This information was confirmed by representatives of the delegations. In particular, the Deputy Minister of Defense of Russia, Colonel-General Alexander Fomin, said that Russia’s military activity in Kyiv and Chernihiv areas would be reduced in order to increase mutual trust and create the necessary conditions for further negotiations.
Former Deputy Minister of Foreign Affairs of Ukraine Oleksandr Chaly from the Ukrainian side said that in the presence of clear legally binding guarantees to Ukraine, which in their content and form should be similar to Part 5 of the NATO Charter, “Ukraine will be in a position to fix its status as a de facto non-bloc and non-nuclear state in form of permanent neutrality.”
