Successful GDP-Warrant Buy-Back Process of Ukraine

by Olha Povaliaieva
Monday, February 21, 2022
1 MIN
Successful GDP-Warrant Buy-Back Process of Ukraine

In February, the Ministry of finance bought back 20% of GDP-warrant

Minister of finance Serhii Marchenko spoke about the state of bonds and payments to them during the all-Ukrainian program Hour of questions to the government. The first thing the politician noted was the buy-back of 20% of Ukraine’s GDP warrant and part of eurobonds with repayment in September 2022. Let us remind that the total nominal value of Ukrainian warrants is $3.24 billion. The term of circulation of warrants will end in 2040. Warrant (securities) have been sold as shares and have been requiring payment for several years. The government made its first ransom in 2020. Ukraine then recovered 10℅ warrants. The second payment took place in 2021. It recovered another 5% of the country’s securities.

It was also revealed that the yield of the bonds with repayment in 2026-2032 is 10-11.5%.

The secondary market for domestic government bonds has also shown a positive trend. Non-residents slowed down their portfolio of Ukrainian bonds. For some time, the bonds sold for $250 million. The average value of the bonds is about $400-460 million.

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