Yuriy Butsa, Ukraine’s commissioner for public debt management, shared insights with Radio NV following a three-day visit by these international investors.
Reestablishing Ties with Global Investors
Butsa highlighted that despite the challenging circumstances, the Ministry of Finance has maintained regular contact with Eurobond investors throughout the conflict—even during the intense fighting around Kyiv. This consistent communication has enabled the government to complete two Eurobond restructurings in record time, with open and transparent relations playing a key role.
"I make every effort to meet them in person abroad whenever possible," Butsa noted, emphasizing that these face-to-face interactions have been crucial in preserving investor trust. One investor, originally from Lebanon, remarked that Kyiv now feels much safer than Beirut.
Market Developments and Investment Opportunities
Reflecting on the current market conditions, Butsa expressed a personal interest in Ukrainian Eurobonds. "I wouldn’t invest all my free money, but I would definitely bet on Ukraine," he said. He pointed out that following the positive expectations linked to the US elections, the Eurobond curve has sagged significantly, creating a potentially attractive entry point for investors.
Market data from the Frankfurt Stock Exchange shows that Ukraine’s Eurobonds due in 2029 are now quoted at 62.25% of par—down from over 74% in mid-February, while Eurobonds due in 2036 have fallen to 48.19% of par from a peak of 60.57%. Meanwhile, GDP warrants have also seen a decline, now at 65.15% of par compared to 86.35% in February.
Looking to the Future
Butsa also stressed the importance of attracting non-residents back to the domestic hryvnia government bond market (OVDP). "I believe that as soon as the situation permits, non-resident investors will return, providing us with long-term, stable capital," he said. The share of non-residents in the government bond market had fallen sharply—from 15.9% (UAH 129.0 billion) in February 2020 to just 1.1% (UAH 20.6 billion) today.
Conclusion
The return of non-resident investors to Ukraine marks a significant milestone in the country’s efforts to rebuild its financial markets amid ongoing challenges. Through diligent communication and strategic restructuring, Ukraine is not only safeguarding its debt market but also setting the stage for renewed international confidence. As investor visits resume and market conditions evolve, Ukraine looks forward to a gradual recovery and increased participation from global financial players.
