60% of Sovereign “VAT” Bonds already sold by primary recipients

Since the end of August, almost all UAH sovereign bonds issued (net UAH 17 bln) have been the special VAT bonds, of which UAH 16.4 bln have been issued to primary recipients – exporters. According to NBU data, 40% of this new debt has since been bought by banks, while another 18% has been purchased by foreign investors. Mykyta Mykhaylychenko:The remainder of the increase went to the “Other” category, which includes both primary recipients as well as other market participants (such as investment companies), while the NBU decreased its holdings of UAH sovereign bonds by 4% or UAH 2.8 bln. Hence, we think, at least 60% of the VAT bonds issued have been already sold by primary recipients to banks and foreign investors, while some could have been sold to other investors