Ukraine

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.

Naftogaz, Ukraine’s largest vertically integrated oil and gas company, is embarking on a roadshow for a dollar bond — its second outing in the international bond markets this year.

Kernel, a Ukrainian agricultural producer, hit the market on Thursday with a five year non-call three bond and raised $300m with a trade that bankers said was tricky to price.

Kernel, a Ukrainian agricultural producer, hit the market on Thursday with a five year non-call three year. In spite of fears around Ukraine’s future relationship with the IMF, the leads have set initial price thoughts at a level onlookers are calling “aggressive”.

Ukrainian steel and mining company Metinvest sold a dual tranche dollar and euro bond on Tuesday, but an inability to tighten from initial price guidance and poor trading in the secondary market on Wednesday had some investors worried that the perfect window for EM issuance is closing.