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"
Ukrainian banks that
have accounts with the
NBU depository can
open depot accounts
for its foreign clients
for the purpose of
buying and selling
Ukrainian government
bonds
Key highlights
With a c.53% share, banks are currently the largest
holder of domestic government bonds followed by the
NBU, which accounts for c.29% of the portfolio²
At c.8% of total outstanding Ukrainian domestic government
bonds as of February 20222, the portfolio held by non-
residents has returned on its upward trajectory in H1 2021
(after Mar-Nov 2020 decline in line with the EM's capital
outflow), while the dynamics was mainly negative in H2 2021
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
April 20191
4%1%
43%
5%
Banks
NBU
February 2022²
2%
8%
8%
47%
Non-residents
53%
29%
Companies
Individuals
Nominal and real weighted avg yields at primary auctions, %
1.4 3.0 4.1 5.0 4.2 3.4 2.8 3.4 3.5 4.0
3.5 2.8
18.6%
16.7%
In US$bn
25.7%
15.1%
21.2%
21.8%
11.2%
11.3% 11.1%
11.7%
12.1% 12.1%
16.7%
15.3%
12.4%
13.4%
8.7% 9.6%
4.9%
16.8%
10.6%
10.6%
10.0%
14.0% 13.9% 14.3%
8.9% 9.4% 9.7%
15.9%
10.8%
9.0%
14.0%
9.6%
8.1%
10.9%
7.7%
8.9%
7.2% 7.1% 8.2%
6.3%
6.1% 6.7%
6.6%
5.7%
5.9%
6.5% 6.2% 6.3% 5.2% 5.1% 5.4%
6.4%
4.3%
4.1%
2.1% 2.3% 4.8% 4.5%
38
20
Held by non-residents, UAHbn
% of total portfolio (excl. NBU)
Source Ministry of Finance, NBU
Notes
1
As of April 26, 2019
2
As of February 1, 2022
3
According to NBU's survey
about inflation
expectations of financial
analysts for the next 12
months
Apr 19 Jul 19 Oct 19 Jan Apr 20 Jul 20 Oct 20 Jan Apr 21 Jul 21 Oct 21 Jan
21
76 102 125 112 93 79
95
97
107 93 81
Apr
Jul
Oct
Jan
Jul
Apr
22
19
19
19
20
32.
Oct
Jan
Jul
Apr
Oct
Jan
20 20 20 21
21
21
21
22
% of total portfolio
Nominal weighted avg yield, %
Real weighted avg yield, %
3
CPI expectations for next 12 months (y-o-y), %
Source Ministry of Finance of Ukraine, NBU
February 2022
BA
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