NBU Head: Ukraine to issue FX-denominated local sovereign bonds

The National Bank of Ukraine and Cabinet of Ministers is finalizing development of an FX-denominated local sovereign debt instrument, NBU Head Sergey Arbuzov said in an interview with weekly Zerkalo Nedeli this week. Svetlana Rekrut: The new initiative aims to head off foreign capital outflow due to national currency instability and to widen the government’s portfolio of borrowing tools. The government has not yet released information on proposed placement volumes or duration, but we expect the initial issue to be medium term (up to three years), while yields are likely to be higher than sovereign Eurobonds given a local liquidity discount.