Non-resident investors in Ukrainian Eurobonds visit Ukraine - Finance Ministry
MOSCOW. April 4 (Interfax) - Non-resident investors in Ukraine's Eurobonds have visited Ukraine for the first time since the start of the crisis in February 2022, local media said, citing the government's commissioner for public debt management Yury Butsa as saying in an interview with Radio NV.
The country's Finance Ministry has always been in contact with holders of Ukrainian Eurobonds, providing them with all necessary information, Butsa said. This work also allowed Ukraine to agree on Eurobond restructuring twice.
"[...] We haven't lost this contact. Every time I have an opportunity to see them in-person abroad, I do so [...] Thanks to these open, transparent relations, the restructuring this time was far less problematic than, for instance, in 2015," he said.
In addition, the Finance Ministry remains interested in non-residents' return to the market of hryvnia-denominated government bonds as well, Butsa said.
"I feel that as soon as the situation permits, non-residents will start to return and will give us an opportunity to develop this segment in an interesting way too, because it's long money. It works, and for such money it's the longer, the better," he said.
According to Frankfurt Stock Exchange data, Ukraine's Eurobonds maturing in 2029 are currently traded at 62.25% of their nominal value. They traded at over 74% of their nominal value in mid-February, and at around 60% prior to Donald Trump's victory in the U.S. presidential election.
Eurobonds maturing in 2036 have dropped to 48.19% of their nominal value after peaking at 60.57% in mid-February. They traded at around 46% of their nominal value before Trump's victory.
However, Ukraine's GDP-warrants are in an even worse situation, falling to 65.15% from 86.35% in February. They traded at 69%-70% of their nominal value before the presidential election in the U.S.
The share of non-residents on Ukraine's government bond market plunged to 1.1% (UAH 20.6 billion), having peaked at 15.9% (UAH 129 billion) in February 2020.
