National Bank of Ukraine seeks strategic investors for NDU, SC
MOSCOW. March 25 (Interfax) - The National Bank of Ukraine (NBU) aims to develop capital market infrastructure and attract strategic investors to the National Depository of Ukraine (NDU) and the Settlement Center for Financial Markets Contracts (SC, both based in Kiev), where the NBU holds significant stakes, Ukrainian media said, citing NBU board member Yury Gelety.
"Our priority is attracting foreign business to this infrastructure. Our key initiative involves facilitating strategic foreign investors with infrastructure management experience to participate in the capital of the Settlement Center and National Depository of Ukraine," Gelety said during the Global Funding and Financing podcast from the international depository Clearstream.
Such investors would enhance the operational reliability and sustainable development of these institutions, Gelety said.
The NBU has already taken steps to strengthen Ukraine's capital market for potential economic recovery, he said. He referenced the link established in 2019 between the NBU's government securities depository and Clearstream Banking Luxembourg, enabling foreign investors to purchase domestic government bonds (OVGZ) without Ukrainian accounts for overseas trading via Clearstream. Foreign holdings peaked at UAH 130 billion (16% of total OVGZ) in February 2020 but have since declined to UAH 20.8 billion (just over 1%).
Gelety identified expanding this link with Clearstream as a current NBU priority to broaden accessible financial instruments. "These include municipal bonds, infrastructure bonds and other debt instruments for Ukraine's reconstruction projects," he said. The relevant changes have already been made to the NBU rules, he said.
Reconstructing Ukraine's cities, infrastructure and energy systems will require substantial international capital inflows, he said. He expressed hope that expanding this link will attract new investors.
As of early 2024, the NBU owned 83.549% of SC shares plus 1.441% state-managed stakes. State-controlled banks (Oschadbank, Ukreximbank, Ukrgasbank, Sense Bank, PrivatBank) held 3.208%, 3.208%, 3.222%, 0.319% and 0.0005% respectively, with the NDU at 0.080% and other shareholders (one individual and 22 legal entities) at 4.973%.
In the NDU, the NBU directly held 25% plus 10.9399% via its Corporate Pension Fund, alongside the NSSMC's 25% state stake, Oschadbank's 24.9903% and Ukreximbank's 9.9903%.