Ukraine bonds at post-restructuring highs amid investor assessment of peace talks – Reuters

Ukraine’s government bonds rose on Monday as investors saw some positive signs in talks on a deal to end Russia’s war against Ukraine, with some bonds reaching their highest level since emerging from last year’s $20 billion sovereign debt restructuring, UNN reports with reference to Reuters.

DetailsUkrainian bonds have risen over the past 1.5 months amid renewed efforts to end the war, with most adding another 1 cent on the dollar on Monday after a tense weekend of diplomacy.

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Hopes for peace have been repeatedly dashed over the past year, but the movement of Ukrainian bonds has signaled renewed optimism, at least among investors, that a ceasefire may now be achievable, the publication writes.

Notably, Monday’s gains left Ukrainian bonds with a 4.5% coupon and maturing in 2034 and 2035 – the two most traded – at almost the same level as at the beginning of February, the publication indicates.

Bonds have also risen for the past six weeks thanks to plans for a new four-year International Monetary Fund program worth $8.2 billion and a European Union loan of 90 billion euros ($105.83 billion) to support government finances.

Ukraine has also just concluded a long-awaited agreement to replace the so-called “GDP warrants” that helped it achieve debt restructuring.

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Despite the growth, not all Ukrainian bonds have surpassed or returned to their early February highs, the publication notes.

Two, for which payments are linked to the country’s future economic growth rather than through regular coupons, and which are not due to mature for at least another 10 years, as indicated, remain significantly lower, at around 57 cents on the dollar, compared to almost 70 cents in February.