Investor Presentaiton
Ukraine's domestic government bond holders
On August 28, 2020,
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
of buying and selling
Ukrainian government
bonds
Key highlights
With a c.51% 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. 10% of total outstanding Ukrainian domestic government
bonds as of September 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
10%
32%
2%
5%
51%
■ Banks
NBU
■Non-residents
■Companies
Individuals
Nominal and real weighted avg yields at primary auctions, %
19.0%18.6%
4.1 4.4 5.0 4.3 3.9 3.4 3.0 2.6 3.4 3.7 3.6 4.0 3.6
16.7%
In US$bn
15.1%
25.7%
10.0%
22.3%
22.8%
11.2%
11.3% 11.1% 11.7% 11.4%
20.1%
11.9%
13.1%
15.3% 14.2%
18.8%
12.0%
16.8%
10.6%
15.3%
9.6%
13.0% 13.99 14.9% 14.5%
10.2% 9.9%
9.4%
8.3%
15.9%
10.8%
10.7% 10.6%
9.0%
14.3%
9.7%
8.9% 8.2%
8.1%
7.5%
7.2%
7.1% 6.4% 5.7%
4.1%
6.6%
4.3%
5.9%
2.1%
6.5% 6.2% 6.3%
2.3% 4.8% 4.5%
5.2%
6.1%
98
106 125 121 106 93 84
75 95 104 98 107 96
Notes
1
1
2
As of September 14, 2021
According to NBU's survey
Sep Nov Jan Mar May Jul 20 Sep
19 19 20 20 20
20
20
Nov Jan Mar May Jul 21 Sep
21 21 21
Jan
21
19
Apr Jul
19 19
about inflation
expectations of financial
analysts for the next 12
months
Source Ministry of Finance, NBU
Held by non-residents, UAHbn
% of total portfolio (excl. NBU)
% of total portfolio
Oct Jan Apr Jul Oct Jan
19 20 20 20 20 21
Nominal weighted avg yield, %
Apr Jul Sep1
21
21
21
Real weighted avg yield, %
2
CPI expectations for next 12 months (y-o-y), %*
Source Ministry of Finance of Ukraine, NBU
September 2021
BA
20
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