Kiev: Ukraine's first Eurobonds in three years gained in their trading debut as an International Monetary Fund programme spurs investor confidence.
The country's 7.75 per cent dollar bonds due September 2020 rose 0.8 per cent to $100.77 (Dh369.8), reducing the yield by 11 basis points to 7.64 per cent as of 12.37pm in London. A basis point is 0.01 per cent.
Ukraine sold $2 billion of Eurobonds in a two-part offering on September 17, at yields of 6.875 per cent for five-year notes and 7.75 per cent for bonds maturing in ten years.
The government previously tried to sell international bonds in August, before abandoning the plan when investors demanded higher yields than it was willing to pay.
"The yields are attractive compared to what you can get in most other markets in the world," said Nigel Rendell, senior emerging-market strategist at RBC Capital in London. "The other thing that's happened is the finance from the IMF. With that agreed, Ukraine's not quite on the straight and narrow, but they're making progress."
The difference between the return investors require from emerging-market sovereign bonds and US Treasuries tightened by 2 basis points to 2.77 per cent, according to the JPMorgan Chase & Co. EMBI+ index. The International Monetary Fund approved a 2 1/2-year, $15.2 billion loan programme for Ukraine, which agreed to trim its budget deficit and raised natural gas prices to qualify for the funds.
