The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

Capital markets: Ukrainian corporate deals prepare to double

Investor appetite returns; Listed companies tipped to debut

Emerging market investors hungry for yield pick-up are likely to find plenty of opportunities in Ukraine over the coming year as local companies take advantage of relatively stable political conditions to access the Eurobond markets in increasing numbers.

Debt bankers say corporate issuance could double from the $2.5 billion raised in 2010 following Viktor Yanukovich’s decisive victory in presidential elections in February. Not only are last year’s successful borrowers – state export bank Ukreximbank, Privatbank, fuel and energy supplier Dtek and its sister mining company Metinvest, and poultry producer MHP – likely to return to the market, but a handful of new names are being tipped to join them.

Indeed, iron-ore producer Ferrexpo, Mriya Agro Holding and fellow agricultural company Kernel Holding were all due to issue debut bonds before the end of 2010 but were deterred by the negative reception of egg producer Avangard’s inaugural $200 million issue at the end of October. That shook investor confidence but analysts insist it was a one-off – blaming variously poor execution, the company’s single rating and the eurozone sovereign debt crisis – and that the effects will not be lasting.

"There are very few corporates in Ukraine that could issue more than $500 million, so we’re still going to see a lot of deals in the $250 million to $500 million range"

Mike Elliff, RBS

"Unfortunately the Avangard deal has slightly contaminated the rest of the sector but I believe that better-rated Ukrainian corporates will be able to access the market successfully in 2011," says Mike Elliff, head of CEEMEA debt capital markets, commodity and export finance at RBS.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree