What happened? Ukrainian Eurobonds have been falling in price for six weeks, since heavy fighting with russian forces in Donbas has begun. Only on Friday, as part of the correction of their quotations, they increased by an average of 1.7%, but in general during the week they fell by 8.1%.
Source. This was stated by Bloomberg, Interfax-Ukraine reports.
Details. Among dollar-denominated Eurobonds, the shortest bond papers maturing in September this year fell the most in price – minimum by 13.5% and maximum by 54.4% of the face value, but due to the proximity of the maturity date, the rate on them jumped by 537.1% per annum against 336.6% per annum a week earlier
These bonds were not affected even by the correction at the end of the week: on Friday they fell in price by 6.2%.
The price of bond papers maturing in 2023 fell minimum by 7.9% and maximum 33.3% of face value, and as a result the interest rate rose from 124.3% to 139.1% per annum.
All other Eurobonds of Ukraine are quoted in the range from 25.7% to 27% of the face value, which is on average 2.3 percentage points lower than a week ago.
As a result, the interest rate on Eurobonds maturing in September 2024 increased by 91.7%, in 2025 – by 66%, in 2026 – by 52.4%, and in 2027 – by 45.5% per annum.
The yield on “long” bonds maturing in 2029 increased by 37.8%, in 2032–33 – by 33.0–32.1% per annum.
Eurobonds maturing in 2026 were quoted with a yield of 57.4%, in 2030 – with 30.8% per annum, which is 4.7 percentage points higher, and 1.9 percentage points above the indicators at the end of the week before last.
The price of GDP warrants, which at the beginning of June was close to the maximum since the beginning of the war – 38.8% of the nominal value (compared to 60% before the war), ended this week at the level of 27.5%. Thanks to Friday's 7.2% rebound, they are down just 0.4% for the week overall.
In general, over the past six weeks, Ukrainian Eurobonds have fallen in price by a third, while GDP warrants have fallen by almost 29%.
Background. During the previous week, Ukrainian Eurobonds lost 7.7% in price. At the same time, the decision of the European Commission to recommend granting Ukraine the status of a candidate in the EU stopped the fall for a while.