Investor Presentaiton
Ukraine's domestic government bond holders
Ways to enter
Ukraine's domestic
currency bond market:
Open individual
securities accounts
with local custodians
• Buy GDNS/CLNS
which are clearable in
Euroclear/
Clearstreaam
• Buy eligible securities
through the link
established by
international
Key highlights
With c.43% share the NBU is the largest holder of
domestic government bonds followed by the banks,
which account for c.42% of the portfolio
Ukraine is making decisive steps to deepen domestic
government bond market and to increase share of non-
residents in local currency bonds portfolio
A link between Clearstream and the depository of the
NBU launched in the end of May 27, 2019
Share of non-residents in total domestic government bonds
amount reached c.11% as of September 20192,
Non-residents' portfolio increased almost 14x since
the beginning of 2019 and more than twofold following
Clearstream link setup
Domestic government bonds held by non-residents
Domestic government bond issuances (in UAH)
UAH-denominated bonds (UAH m)
Funds remitted to state budget
up to 1 year
1-3 years
3-5 years
over 5 years
2017
2018 YTD 20192
32,755 65,128 176,029
11,294 60,429 95,528
19,529 2,983 53,289
1,932
1,716
4,232
22,980
Weighted average yield at auctions, %
15.0%
17.8%
17.87%
up to 1 year
15.2% 17.9%
18.8%
14.9%
16.2%
17.4%
15.1%
15.9%
16.0%
15.6%
9.8%
9.1%
1-3 years
3-5 years
over 5 years
Consumer inflation¹
13.7%
Nominal and real weighted avg yields at primary auctions, %
depositories
Held by non- 0.3 0.3 0.2 0.2 0.4 0.5 0.7 1.4 1.6 2.1 2.9 3.5 3.4
residents,
USDbn
14.1%
16.1%
18.5% 18.9% 19.0% 18.8%
19.0% 18.9%
17.1% 16.9% 17.6%
13.2%
17.9%
16.7%
16.0%
16.3%
11.7%
12.9%
9.6%
10.9%
4.8% 8.4%
8.9% 8.9%
8.8%
10.0% 9.2%
10.9%
8.6%
8.9% 9.4% 7.6%
9.6%
9.1%
1.8% 1.8% 1.6% 1.6% 2.4% 3.3%
1.0%
1.0% 0.9% 0.8% 1.3%
7.3 7.2 6.4 [6.3 10.0 13.4 20.3
9.4%
8.0%
8.1%
6.9%
1.8% 2.7% 4.7% 5.4% 7.3%
4.7%
3.5%
1.8%
36.3] 42.2] 56.2 73.8 87.1 86.2
Notes
1
Actual CPI change (y-o-y)
in December for 2017 and
2018, and in July for YTD
2019
2
As of September 6, 2019
Apr
18 18 18 19 19 19 19
Held by non-residents, UAHbn
% of total portfolio (excl. NBU)
Source Ministry of Finance
Sep Oct Nov Dec Jan Feb Mar
18
2
19
19
May Jun Jul Aug Sep
19 19 19
18
18
18
% of total portfolio
Jan Mar May Jul Sep Nov Jan
18
18 18
Nominal weighted avg yield, %
CPI change (y-o-y), %
Source Ministry of Finance of Ukraine, NBU
Mar May
19 19
Real weighted avg yield, %
19
Jul
19
Sep 2
19
BA
September 2019
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