Bondholders Receive Payments From Ukrainian Government, Sources Say
17 March 2022 - 2:13AM
Dow Jones News
By Alexander Saeedy
Ukraine on Tuesday made interest payments due under its
dollar-denominated sovereign bonds to creditors, showcasing the
country's commitment to servicing debt despite a grueling land
invasion of the country that has displaced more than million
Ukrainian citizens.
Bondholders holding a Ukrainian bond due 2033 have received
about $94 million in interest payments due Tuesday, according to
people familiar with the matter.
Ukraine's sovereign bonds have been trading at deeply distressed
levels since the country was invaded and investors have been
uncertain whether a government in Kyiv will be able to stand by its
debts in the event that Russia is victorious.
The 2033 bond was quoted between 29 and 32 cents on the dollar
this morning, according to AdvantageData.
Although Ukraine is under immense fiscal strain due to the war,
it has been the recipient of generous financial aid from allied
countries and institutions, such as the IMF, which approved a $1.4
billion financial aid disbursement to the country on March 9.
In February, the U.S. said it would guarantee up to $1 billion
in debt raised by the Ukrainian government, while the European
Union agreed to send 1.2 billion euros ($1.34 billion) in direct
financial assistance.
Despite the military conflict, Ukraine still has access to
financial markets, and Tuesday raised 5.4 billion hryvnia ($185
million) from an auction of dollar and hryvnia domestic bonds.
Russia currently stands on the edge of defaulting on its
sovereign debts, with $117 million in dollar interest payments due
Wednesday that analysts don't expect the Kremlin to be able to pay,
given restrictions on the country's foreign-exchange reserves.
Write to Alexander Saeedy at alexander.saeedy@wsj.com
(END) Dow Jones Newswires
March 16, 2022 10:58 ET (14:58 GMT)
Copyright (c) 2022 Dow Jones & Company, Inc.