Sympathy for Ukraine bonds, market commentary by Kai Johannsen
Frankfurt (ots) – The Ukraine war is undoubtedly a huge tragedy – so
like any other war. Hardly anyone could have imagined that in the year
2022 in civilized, united Europe, which has been successfully
community of states and exemplifies exactly this thought with all its might
upholds that another war of aggression could become a reality. Sadly it is
so. He has already taken with him a great deal of human suffering, many injuries and many dead
brought himself. Many people have lost their homes, their homes, are on
fleeing – uncertain when they can return. Everyone hopes so
this war will end better today than tomorrow. But after that it looks
currently not off.
But the day of the end of the war will come, and then it will be a question of reconstruction
go to Ukraine. It’s sure to be a feat, and its scope is
ultimately determined by how long the senseless bombing goes on. Around
to handle this tour de force of reconstruction, Ukraine will need a lot of capital
outside – that much is certain. This capital is from
Funding institutions are provided, social bonds and sustainable bonds
there will be for it. However, the Ukraine will also have a not inconsiderable impact
Have to lift part of the bond markets with their own issues and certainly also
want.
The mobilization of leverage through the bond markets was also on the
this year’s conference of the International Capital Market Association (ICMA) in Vienna
themed. Experts were almost unanimously of the opinion that Ukraine
later received a lot of sympathy from investors for the reconstruction
there will be sympathy funding, so to speak. And that should turn into two
reflect aspects. First, in the volume of capital available to investors
land will be provided. A buyers’ strike for the country’s bonds is likely
rather not to be feared. This means in all probability very high
Oversubscription of bond issues – probably even more so for bonds, their proceeds
then be earmarked, i.e. social or sustainability bonds.
Second: Even if nobody today the market conditions on day X of the first
Emission of Ukraine after the war can reliably predict, because yes
It goes without saying that it is not at all clear in what condition and
investor sentiment the markets are then, it should be clear that the
Investors with their sympathy funding certainly not with the required
conditions are exceeded. Ukraine can count on one right after all
set an attractive funding situation overall, according to the assessment of the
Experts at the 54th ICMA Conference. With that, of course, there’s no word on returns
and spreads said. It would be presumptuous to attempt to assess this today.
Funding means Ukraine gets not only through the market, but also through
are made available to multilateral funding institutions or banks.
This includes the European Investment Bank (EIB), which operates in the Grand Duchy
Luxembourg-based bank of the European Union (EU). “It’s absolutely correct
there is no question that we as the EIB are doing our part to help rebuild Ukraine
will contribute. And that will be a substantial contribution. We were them
First, within days of the start of the war funds to Ukraine
have distributed, and also see an important role for the reconstruction
us,” says Werner Hoyer, President of the EIB, to the Börsen-Zeitung.
“Of course, these are already running in our house
preparations. In doing so, we rely on international support
Investors who have signaled their interest to us. Our sustainability
Awareness bonds offer a suitable means of doing this, and we are working on them
Evaluation criteria needed to make markets transparent and
purposefully involved in this mega project,” explains Hoyer.
Ukraine currently has bonds outstanding in the local currency hryvnia and in the
Currencies euro and dollar (see chart). The maturities of the bonds in the
single currencies begin this year and range from a dollar bond
by the year 2040. This total volume of bonds of almost 25 billion dollars or
due to the parity in euros, it can be seen that Ukraine in the
recent years not exactly a frequent issuer on the international
bond markets has been. After the end of the war, the rarity value could
of the issuer Ukraine on the bond market but faded a little. Hope kicks
that soon.
Press contact:
Stock exchanges newspaper
editorial staff
Telephone: 069-2732-0
www.boersen-zeitung.de
Further material: http://presseportal.de/pm/30377/5274338
OTS: Börsen-Zeitung