Ukraine

Investors eyeing Ukraine will have to wait until next year for a clearer view on how friendly the country is to foreign capital, after a court delayed a decision on the fight over Privatbank, the scandal dominating the country's financial affairs.

There are fundamental reasons for UK assets to be revalued upwards, analysts believe. The powerful majority achieved by Boris Johnson's Conservatives tilts the UK towards a Trump-like market-friendly, fiscally generous patch. But the reality of Brexit cannot be ignored for long.

Ukraine’s political establishment was shaken up and, in large part, replaced by newcomers early in 2019. The lead up to the election was fraught, as investors’ fear of the unknown drove up Ukrainian rates. But President Zelensky swiftly won over the international community, setting up a superb run of borrowing.

A ceasefire agreement between Russia and Ukraine, has been met with guarded scepticism by equity investors. Many remain unconvinced that a lasting solution to the dispute over East Ukraine is imminent.

The International Monetary Fund (IMF) gave some reassurance to Ukraine on Saturday, when one of its senior staff told president Volodymyr Zelensky that it has a support programme in place.

Ukraine is approaching a crucial moment in its financial history as a court decision nears on the future of one of its largest commercial banks that will determine the course of foreign investment in the country.

The chairman of UkraineInvest, a body set up to promote investment in the country, castigated the rating agency Moody’s on Monday over its cautious approach to upgrading the sovereign from a C rating, asking if the firm had an institutional bias against Ukraine.

The National Bank of Ukraine has accused Ihor Kolomoisky, former owner of Privatbank, of orchestrating a sustained campaign of violence and intimidation in an attempt to put pressure on the central bank, but international investors remain largely unfazed.

Investors had three Ukrainian corporate bonds to buy this week — the first time there has ever been such a choice, according to Dealogic data. The deals defied a tricky market and political turbulence to pull off strong results.

The State Export-Import Bank of Ukraine is on screens for its first ever tier two bond, angling for a steep price.

Three Ukrainian borrowers are set to come to market for hard currency paper, perhaps as early as this week. The deals are expected to go well, as investors generally believe there is good value in Ukrainian assets.

Emerging market issuers continued to enjoy solid market conditions this week with new mandates joining the pipeline and Abu Dhabi’s Mamoura executing a $3.5bn triple tranche trade.