Ukraine

Ukraine priced a $2bn 12 year bond on July 1, tightening pricing to 7.3% yield that was inside the expectations of many market participants as the country passed a major test of international investor acceptance with flying colours.

Three emerging market issuers in CEEMEA mandated for trades on Monday, as market insiders said issuers are scrambling to make the most of issuance opportunities before investors take their foot off the gas.

Ukrainian steel and mining company Metinvest was one of several emerging markets issuers to tap bond markets this week. The deal was several times oversubscribed, confirming that investors are still on the hunt for yield and are willing to look to single B rated emerging market credits for that.

The National Bank of Ukraine’s (NBU) decision to maintain interest rates against pressure to cut them was not enough reassurance for analysts worried about the broader reform agenda in the country. As the saga continues surrounding the ownership of one of its banks rumbles on, a number of obstacles stand in Ukraine’s path to recovery.

The Ukrainian Exchange is reviving its FX futures market, two years after authorities shut down its trading software system.

Less than a year ago, international investor optimism about Ukraine was high but the journey to western style reform since then has shown just how hard a road it can be to travel.

International investors hoping for reform in Ukraine were again disappointed on Friday when the deputy governor of its central bank, the National Bank of Ukraine, resigned from his post.

Ukraine returned to the international bond market on Thursday to issue the Reg S/144A 12 year bond that it pulled just weeks ago when its central bank governor resigned right after it was priced.

Krylyo Shevchenko, the chairman of state-run Ukrgasbank, has been selected as the new governor of the National Bank of Ukraine (NBU) after weeks of deliberation. The choice has elicited a mixed reaction from market spectators, some of whom hope that Ukraine can salvage its international debt market access and IMF funding. Mariam Meskin and Ross Lancaster report.

Ukraine's access to both IMF funding and debt markets was at "high risk" as concerns arose over the candidates to be the next governor its central bank. The IMF warned president Volodymyr Zelensky on Tuesday of the importance of maintaining the National Bank of Ukraine's independence, which some say highlights how critical the choice of governorship will be.

Following the high drama in Ukraine last week when the sovereign pulled a long anticipated bond issue after the governor of the central bank resigned just after the deal was priced, investors are now casting a cautious eye on who will take over.

The shock resignation of the governor of Ukraine’s central bank on Wednesday night led the sovereign to pull its much-anticipated Eurobond, which had priced just moments before. As investors grow more unsettled, experts fear for the sovereign’s access to institutional funding and capital markets, writes Mariam Meskin.