Investor Presentaiton
Ukraine's domestic government bond holders
On August 28, the
NBU has eliminated
obstacles for foreign
investors to enter the
Ukrainian securities
market through
establishment of the
direct access to the
purchase and sale of
government bonds
with the help of a
"nominee holder"
From now on
Ukrainian banks that
have accounts with the
NBU depository will be
able to open depot
accounts for its foreign
clients for the purpose
Key highlights
With a c.50% share, banks are currently the largest
holder of domestic government bonds followed by the
NBU, which accounts for c.32% of the portfolio¹
At c.11% of total outstanding Ukrainian domestic government
bonds as of June 20211, the portfolio held by non-
residents has recently returned on its upward trajectory
(after Mar-Nov 2020 decline in line with the EM's capital
outflow)
Ukraine is making consistent steps to deepen domestic
government bond market and to increase share of non-
residents in local currency bonds portfolio
A link between Clearstream, the international central
securities depository, and the depository of the NBU
active since May 2019 ensuring streamlined access to
Ukraine's domestic government bond market
Domestic government bonds held by non-residents (eop)
Domestic government bond holders¹
11%
32%
2%
5%
■ Banks
■NBU
50%
■Non-residents
■Companies
■Individuals
Nominal and real weighted avg yields at primary auctions, %
2.1 3.5 4.1 5.0 5.2 4.2 3.8 3.2 2.8
3.0 3.7
3.5 4.0
19.0%18.6%
16.7%
In USDbn
26.4%
15.1%
24.0%
10.0%
21.2%
21.8%
of buying and selling
11.2%
11.3% 11.1% 11.7%
18.7%
18.1%
Ukrainian government
bonds
15.8%
16.3%
14.2%
12.7%
12.4%
13.4%
0.9%
11.4%
10.2%
14.0%
12.7%
8.9% 8.5%
14.6% 14.3%
10.0% 9.7%
16.2%
1.0%
10.7% 10.6%
9.0%
8.9%
7.5% 7.2% 7.1%
8.1%
8.2%
6.4%
6.6%
7.2%
5.7%
4.1%
5.9%
4.3%
2.1%
6.5% 6.2% 6.3 6.5%
2.3% 4.8% 4.5% 4.8%
56 87 102 118 129 112 101 88 79 85 103 97 111
Notes
1
2
As of June 29, 2021
According to NBU's survey
about inflation
19
expectations of financial
analysts for the next 12
months
Source Ministry of Finance, NBU
Held by non-residents, UAHbn
% of total portfolio (excl. NBU)
Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun
19 19 19 20 20 20 20 20 20 21 21 21
% of total portfolio
ទីន
Jan Apr
19 19
Jul Oct Jan Apr Jul Oct Jan
19
19 20 20 20 20 21
Apr
21
Jun1
21
Nominal weighted avg yield, %
Real weighted avg yield, %
2
CPI expectations for next 12 months (y-o-y), %
Source Ministry of Finance of Ukraine, NBU
June 2021
BA
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