NRG Fixed Income Weekly

Ukraine/Fixed Income
June 20, 2011
Ukrainian Bonds: Weekly Review

Money Market Trends
Key market data

Last Close
Banking system liquidity remained unchanged, while interest rates
edged up. Banking sector liquidity remained on the same level, while
interest rates rose following new reserve requirements for banks pg. 2
Domes%c Bond Market Overview

The MoF refused to sell bonds at the primary aucon; the secondary
market was at. The MoF did not sell any OVGZs at the primary aucon
on Tuesday, June 7th. Yields on the OVGZ secondary market were le<
unchanged pg. 3
Ample cash balances should oset a rise in borrowing, further reducing
yields. The governments borrowing needs for the upcoming week will be
relavely high (~ UAH 1.4 bn) yet ample cash balances should encourage
the Treasury to test the market once again pg. 4
Eurobond Market Overview

Yields on Ukrainian Eurobonds trend upward; Ukrainian Eurobond pric-
es fell signicantly last week as fears over the possibility of Greeces default shook the market and reduced investors risk appete pg. 6
Change, %
1w
1m
Currency
USD/UAH
EUR/UAH
UAH NDF 1Y
Money market
KievPrime ON
KievPrime 3M
Accounts at NBU
NBU CDs
7.99
11.35
8.55
0.00
-0.13
0.00
0.00
0.00
-0.05
2.50%
5.75%
16.0
16.0
0.32%
0.29%
-2.36
5.6
0.46%
0.57%
-1.08
1.3
4.81%
6.38%
7.35%
6.87%
8.10%
7.30%
7.08%
7.00%
7.10%
7.85%
10.15%
9
22
3
17
7
12
26
32
-30
-8
0
59
41
1
29
11
26
61
80
0
30
25
Yields
Ukraine-13
Ukraine-16
Ukraine-21
Ukreximbank-15
MHP-15
DTEK-15
Metinvest-15
OVGZ 3M
OVGZ 6M
OVGZ 9M
VAT-OVGZ
Source: Bloomberg, NBU, Ministry of Finance
Trade Ideas
Bid
Ask
Source: Ministry of Finance, NRG calculaons
Yuri Tovstenko
y.tovstenko@nrg-capital.com.ua
Dmytro Shevchenko
d.shevchenko@nrg-capital.com.ua
17-Jun
12-Jun
7-Jun
2-Jun
28-May
23-May
18-May
13-May
8-May
10.8%
10.5%
10.2%
9.9%
9.6%
9.3%
9.0%
3-May
Eurobonds market: we recommend to pay a,enon to the new issue

Ukraine-16, which is trading at a premium to the sovereign curve of approximately 37 basis points. We expect the spread to compress signicantly
and possibly disappear in the short-term.
VAT-OVGZ yield dynamics
28-Apr
Domesc bond market: we recommend to buy: a) government bonds with

maturies in March and April 2014 at a yield of 10.10%; b) VAT bonds at a
yield of 10.0%, as these securies oer the highest yield on the market. We
ancipate yields to drop as the banking sector liquidity is restored to its
normal level.
June 20, 2011
Money Markets Monitor

Liquidity in the banking system remained stable, while interest rates
edged up.
The overall liquidity of the banking system (including the banks' holdings of
the NBUs cercates of deposit) stood at UAH 26-28 bn, nearly
unchanged compared to the previous week. At the same me banks
balances on correspondent accounts with the NBU declined to the level of
UAH 16.0-17.5 bn as the NBU issued cercates of deposit in the total
amount of UAH 7.6 bn while redempons remained at a low level.
Figure 1. Banking sector liquidity
The overall level of liquidity in the banking system remained unchanged compared to the previous week
Figure 2. Money market rates, %

9
35
12%
30
10%
8%
25
6%
20
4%
15
2%
10
22-Mar
0%
3
2
1
5-Apr
19-Apr
3-May
17-May
31-May
Banks' balances with Centr. Bank, UAH bn (LS)
0
Jun-10
14-Jun
Kiev overnight (RS)
Aug-10
Oct-10
LIBOR USD 3M
Dec-10
Feb-11
KievPrime 3M
Apr-11
Jun-11
MosPrime USD 3M
Source: Bloomberg
Source: Naonal Bank of Ukraine, Bloomberg
As a result of the stabilizaon of the banking sector liquidity at the level of

UAH 26-28 bn, the interbank interest rates halted their decline - in fact the
overnight interest rate increased slightly to 2.50% from 2.18% a week
earlier, while the weekly rate climbed up to 3.50% from 3.44% over the
same period.
But interest rates on the interbank market

climbed up following an increase in the
reserve requirements for banks
Figure 3. NBU CDs redemp%on schedule, UAH mn

3000
2686
2500
1897
2000
1585
1300
1500
1283
1000
610
601
500
747
530
3
45
22-Jul
29-Jul
5-Aug
300
500
12-Aug
15-Jul
8-Jul
1-Jul
29-Jun
24-Jun
23-Jun
22-Jun
21-Jun
20-Jun
17-Jun
Source: Naonal Bank of Ukraine, NRG calculaons
We expect that a return of the baking sector liquidity to the levels of midMay (UAH 37-40 bn) may be prolonged. Last week, in a rst step towards
restraining inaonary pressures, the Naonal Bank of Ukraine adopted a
resoluon (195), which calls for an increase in the banks reserve
requirements on foreign currency deposits. Eecve from July 1st the
reserve rao on demand deposits and current accounts will rise from 7%
to 8%. The reserve rao on short-term foreign currency deposits is set to
rise from 4% to 6%, whereas the reserve rao for long-term deposits will
decline to 2%. The new resoluon restricts the amount of local
government bonds issued to nance the EURO 2012 infrastructure
projects that may be counted as part of reserves to 50% of the par value of
the government bonds.
Restoraon of the banking sector liquidity

to the levels of mid-May may be prolonged
June 20, 2011
Domestic Bond Monitor

Low demand from banks coupled with small government renancing
needs once again led to a lack of placements of government bonds at the
primary auc%on on Tuesday, June 14th.
The aucon took place against the background of a low level of banking
sector liquidity which led to an extremely low volume of demand from
banks. On the day of the aucon, banks balances on the correspondent
accounts with the NBU declined by 26.1% to UAH 16.0 bn, resulng in
relavely small demand volume of UAH 187.0 mn which is 80.6% lower
compared to the previous week.
Low demand and low government renancing needs lead to lackluster results
at the primary aucon
The short-term 3-month and 9-month T-bills received zero bids owing to
the reluctance of banks to accept the current low of yields on these issues,
as well as due to the need for long-term sources of funds.
Figure 4. State bonds auc%on results
ISIN short
primary primary
Figure 5. Primary auc%on weighted average yields, %

119473
primary
Da ys to ma turi ty
98
273
707
1813
Dema nd, UAH mn
0.0
0.0
25.0
162.0
Number of bi ds
Bi ds a ccepted
0.00%
0.00%
9.30%
12.50%
Hi ghes t bid
Lowes t bi d
0.00%
0.00%
9.00%
11.30%
Cut-off yi el d
0.00%
0.00%
0.00%
0.00%
Wei ghted a vg. yi el d
0.00%
0.00%
0.00%
0.00%
Funds ra is ed, UAHmn
0.0
0.0
0.0
10.5%
10.0%
9.5%
9.0%
8.5%
8.0%
7.5%
7.0%
6.5%
6.0%
5.5%
5.0%
4.5%
0
0.0
22-Mar-11
8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38
17-May-11
24-May-11
7-Jun -11
Maturity, m onths
However, the yields at which banks were willing to buy 2-year and 5-year
government bonds were far above the levels seen acceptable by the
Ministry of Finance. A total of 2 bids were placed for a the 2-year issue for
mere UAH 25 mn with a yield of 9.0% and 9.30%, which the Treasury
rejected, not willing to sell these securies below the levels of the
previous aucons (9.0%).
The Ministry of Finance connued, albeit

unsuccessfully, to push the market lower, as cash balances on the Treasurys
account remain ample
The largest volume of demand (UAH 162 mn) was concentrated on 5-year
bonds with a preferred yield in the range of 11.30-12.50%, which the
Treasury also rejected.
Figure 6. OVGZ redemp%on/issuance schedule, UAH mn
3500
3000
2500
2000
1500
1000
500
Issuance
8-14 Jul
8-14 Jul
1-7 Jul
24-30 Jun
17-23 Jun
10-16 Jun
3-9 Jun
27 May-2 June
20-26 May
13-19 May
Redemption
June 20, 2011

The volume of T-bills maturing next week is UAH 1.37 bn, which increases
the governments renancing needs and thus is expected to improve the
results of the aucon. However, a recent new placement of Eurobonds in
the amount of ~UAH 10 bn and a signicant amount of funds on the
Treasurys Single Account (about UAH 17 bn) could further induce the
Ministry of Finance to lower interest rates at the primary aucon.
The Ministry of Finance remains in a

good posion to force the yields lower...
Secondary market dynamics remain unchanged

The dynamics on the secondary market for government bonds remained
largely unchanged due to the stabilizaon of the overall liquidity of the
banking system yields did not move. It is worth nong only a marginal
increase of 3-5 bps in the yield on government bonds maturing in MarchApril 2014 - these bonds are traded at a yield of about 10.3%. At the same
me yields on the most liquid government issues (the VAT bonds)
remained at 10.15%
We ancipate that the yields on government bonds in the secondary will
remain unchanged in the near future as the NBUs new resoluon designed
to withdraw excess liquidity from the market by raising reserve
requirements takes eect. Starng on July 1st, when the resoluon comes
into force, banks will be forced to increase their required reserves which
should reduce their demand for government bonds and prevent interest
rates from declining. However, we expect interest rates on government
bonds to decline once the liquidity of the banking sector is restored to the
level of UAH 37-40 bn.
We do not foresee interest rates declining signicantly within the next two
weeks due to the increased reserve requirements that should reduce excess
reserves
Figure 7. Government renancing needs (debt repayment

schedule), UAH mn
3 500
3 000
2 500
2 000
1 500
1 000
500
0
Local debt
External debt
* Repayment to be made within 7 days following the aucon date stated above
Source: Ministry of Finance, Bloomberg, NRG calculaons
June 20, 2011

Figure 8. Primary auc%on results
ISIN
Date
Maturity
date
Days to Volume of bids Volume of bids Total volume

maturity submitted, UAH accepted, UAH of issue, UAH
Number of Number of
Highest
bids
bids
bid
submitted accepted
Lowest
bid
Cut-off
Weighted Funds raised,
yield average yield
UAH
UA4000111223
1-Mar-11 5/25/2011
84
30 000 000
30 000 000
5.5%
5.5%
0.0%
0.0%
UA4000110068
1-Mar-11 8/10/2011
161
250 000 000
225 000 000
415 000 000
7.0%
6.7%
6.7%
6.7%
218 504 250
Prima ry
1-Mar-11 2/29/2012
364
105 000 000
UA4000108823
1-Mar-11 1/29/2014
1064
1 263 000 000
UA4000114128 15-Mar-11 9/14/2011
182
730 000 000
3/7/2012
357
1 040 000 000
UA4000108823 15-Mar-11 1/29/2014
1050
1 640 000 000
1 375 000 000 2 705 000 000
UA4000114136
15-Mar-11
9.0%
8.8%
0.0%
0.0%
300 000 000 1 330 000 000
14
12.5%
10.9%
10.9%
10.9%
303 357 000
550 000 000
550 000 000
14
7.3%
6.5%
6.7%
6.7%
532 280 600
1 000 000 000 1 000 000 000
29
27
9.0%
8.0%
8.7%
8.5%
923 895 550
30
23
11.0%
10.7%
10.9%
10.7% 1 399 646 300
UA4000106181 15-Mar-11 7/13/2016
1946
645 000 000
480 000 000
680 000 000
12.5%
9.3%
9.3%
9.3%
UA4000114128 22-Mar-11 9/14/2011
175
110 000 000
60 000 000
610 000 000
6.8%
6.7%
6.7%
6.7%
58 132 800
UA4000114599 22-Mar-11 12/14/2011
266
295 000 000
225 000 000
225 000 000
12
10
8.3%
7.7%
8.0%
7.9%
212 731 950

294 799 830
492 000 000
UA4000107510 22-Mar-11 12/12/2012
630
808 000 000
287 000 000
947 180 000
25
10.0%
9.6%
9.9%
9.8%
UA4000107528 22-Mar-11 7/20/2016
1946
160 000 000
12 600 000
12.5%
12.0%
0.0%
0.0%
UA4000114128 29-Mar-11 9/14/2011
168
205 000 000
610 000 000
7.0%
6.7%
0.0%
0.0%
3/7/2012
343
712 000 000
140 000 000 1 140 000 000
17
8.7%
8.5%
8.5%
8.5%
129 726 800
UA4000115117 29-Mar-11 3/26/2016
1092
730 000 000
100 000 000
100 000 000
19
11.0%
10.8%
10.8%
10.8%
100 000 000
Prima ry 29-Mar-11 3/16/2016
1813
40 000 000
13.0%
12.5%
0.0%
0.0%
7/6/2011
91
30 000 000
5.8%
5.8%
0.0%
0.0%
30 000 000
UA4000114136
Prima ry
29-Mar-11
5-Apr-11
UA4000114599
5-Apr-11 12/14/2011
252
725 000 000
225 000 000
13
8.0%
7.8%
7.8%
7.8%
28 476 300
UA4000107510
5-Apr-11 12/12/2011
616
893 000 000
197 000 000 1 144 180 000
27
10.0%
9.6%
9.6%
9.6%
203 705 880
100 000 000
UA4000116297
12-Apr-11 10/12/2011
182
300 000 000
100 000 000
7.3%
6.5%
6.5%
6.5%
96 861 000
UA4000114136
12-Apr-11
3/7/2012
329
1 020 000 000
300 000 000 1 440 000 000
23
8.5%
8.0%
8.0%
8.0%
279 990 000
UA4000115117
12-Apr-11 3/26/2014
1078
2 033 500 000
359 000 000
459 000 000
42
12
10.9%
10.5%
10.5%
10.5%
363 132 090
UA4000107528
12-Apr-11 7/20/2016
1925
35 000 000
12 600 000
12.5%
12.3%
0.0%
0.0%
Prima ry
19-Apr-11 7/20/2011
91
277 000 000
6.0%
5.3%
0.0%
0.0%
UA4000114599
19-Apr-11 12/14/2011
238
1 190 000 000
1 110 000 000 1 365 000 000
35
33
7.8%
6.9%
7.5%
7.4% 1 059 193 600
1 580 000 000 1 580 000 000
UA4000116974
19-Apr-11 4/17/2013
728
1 880 000 000
47
37
9.8%
8.9%
9.4%
9.2% 1 580 000 800
UA4000106181
19-Apr-11 7/13/2016
1911
720 000 000
680 000 000
20
9.3%
9.0%
0.0%
0.0%
UA4000116297
26-Apr-11 10/12/2011
168
255 000 000
140 000 000
240 000 000
7.0%
6.5%
6.5%
6.5%
135 933 000
Prima ry
26-Apr-11 4/25/2012
364
945 000 000
22
8.4%
7.8%
0.0%
0.0%
UA4000115117
26-Apr-11 3/26/2014
1064
1 196 000 000
1 066 000 000 1 525 000 000
32
29
11.0%
10.2%
10.5%
UA4000110068 10-Ma y-11 8/10/2011
91
350 000 000
415 000 000
5.5%
5.0%
0.0%
0.0%
8/2/2012
273
292 000 000
11
7.8%
7.4%
0.0%
0.0%
UA4000116974 10-Ma y-11 4/17/2013
707
1 163 000 000
560 000 000 2 140 000 000
27
9.4%
9.3%
9.3%
9.3%
562 828 000
UA4000106181 10-Ma y-11 7/13/2016
1890
740 000 000
680 000 000
9.2%
9.0%
0.0%
0.0%
UA4000116297 17-Ma y-11 10/12/2011
147
200 000 000
30 000 000
270 000 000
6.6%
6.0%
6.0%
6.0%
29 292 300
15
8.0%
7.5%
0.0%
0.0%
1 046 500 000 1 046 500 000
44
21
10.7%
10.0%
10.2%
Prima ry 10-Ma y-11
Prima ry 17-Ma y-11 5/16/2012
364
477 000 000
UA4000118871 17-Ma y-11 4/30/2014
1078
1 516 500 000
10.4% 1 084 094 420

0
10.3% 1 050 489 540
5/4/2016
1813
840 000 000
12.5%
12.0%
0.0%
0.0%
UA4000110068 24-Ma y-11 8/10/2011
77
20 000 000
20 000 000
435 000 000
4.8%
4.8%
4.8%
4.8%
19 801 600
Prima ry 24-Ma y-11 2/15/2012
266
462 000 000
8.3%
7.3%
0.0%
0.0%
UA4000119473 24-Ma y-11 5/22/2015
728
810 000 000
525 000 000
525 000 000
19
9.5%
9.0%
9.0%
9.0%
525 000 000

0
Prima ry 17-Ma y-11
UA4000107528 to
24-Ma
y-11 7/20/2016
1883following
20 000the
000 aucon date
0 stated
12 600above
000
* Repayment
be made
within 7 days
12.5%
12.0%
0.0%
0.0%
Prima ry 31-Ma y-11 11/30/2011
182
50 000 000
9.0%
9.0%
0.0%
0.0%
Prima ry 31-Ma y-11 2/29/2012
273
92 000 000
9.4%
7.8%
0.0%
0.0%
UA4000119473 31-Ma y-11 5/22/2013
721
341 300 000
525 000 000
12.0%
9.5%
0.0%
0.0%
7-Jun-11 12/7/2011
182
50 000 000
9.0%
9.0%
0.0%
0.0%
6/6/2012
364
297 000 000
145 000 000
145 000 000
9.5%
8.0%
8.0%
8.0%
134 375 850
UA4000118871
7-Jun-11 4/30/2014
1057
617 000 000
347 000 000 1 393 500 000
16
10.5%
10.1%
10.1%
10.1%
350 570 630
Prima ry
14-Jun-11 9/21/2011
98
0.0%
0.0%
0.0%
0.0%
Prima ry
14-Jun-11 3/14/2012
273
0.0%
0.0%
0.0%
0.0%
UA4000119473
14-Jun-11 5/22/2013
707
25 000 000
525 000 000
9.3%
9.0%
0.0%
0.0%
6/1/2016
1813
162 000 000
12.5%
11.3%
0.0%
0.0%
Prima ry
UA4000120794
Prima ry
7-Jun-11
14-Jun-11
June 20, 2011

Figure 9. Local currency bonds
ISIN
Issuer
Rating
Exchange listing
UA4000076780
Ministry of Finance
UA4000110068
Ministry of Finance
UA3B00022509
Ministry of Finance
UA4000062012
Ministry of Finance
UA4000048219
Ministry of Finance
UA4000064893
Ministry of Finance
UA4000053912
Ministry of Finance
UA4000101018
Ministry of Finance
UA4000063564
Ministry of Finance
UA4000061451
Ministry of Finance
UA4000063192
Ministry of Finance
UA4000107510
Ministry of Finance
UA4000064018
Ministry of Finance
UA4000065429
Ministry of Finance
UA4000116974
Ministry of Finance
UA4000108823
Ministry of Finance
UA4000118871
Ministry of Finance
UA4000082531 (VAT-2) Ministry of Finance
UA4000110613
Ukrtelecom, 2-L
uaA (Credit Rating)
Globinskiy myas., 1-A
UA4000026173
uaA/ (Credit Rating)
Galychina, 1-D uaBB/( Credit Rating)
UA4000075857
Hlebprom, 1-E
UA4000111462
In progress
UA4000019657
Hreschatyk, 1-F
BBB-(ukr) (Fitch)
UA4000105852
Sberbank of Russia,
Aa1.ua (Moodys)
UA4000019681
Hreschatyk, 1-G
BBB-(ukr) (Fitch)
UA4000029490
Oschadbank, 1-B
Aa1.ua (Moodys)
UA4000107239
Prominvestbank, 1-B
Aa1.ua (Moodys)
UA4000029425
Alfa Bank, 1-H
Baa3.ua (Moodys)
UA4000019699
Hreschatyk, 1-H
BBB-(ukr) (Fitch)
UA4000091805
Platinum Bank, 2-A
uaA (Credit Rating)
UA4000095525
Akta Bank, 1-
uaBBB+ ()
UA4000088462
Business Standard uaBBB- (Credit Rating)
UA4000109425
Credit Dnepr, 1-F
Baa3.ua (Moodys)
UA4000104053
Megabank, 1-G
uaA- (Credit Rating)
UA4000114433
Business Standard
In progress
UX:2
PFTS: 2 / UX: 0
PFTS: 2
PFTS: 2 / UX: 0
UX: 0
PFTS: 0 / UX: 0
PFTS: 2 / UX: 0
PFTS: 2
PFTS: 0
PFTS: 0 / UX: 0
PFTS: 0 / UX: 2
PFTS: 2
PFTS: 2
PFTS: 0
UX: 2
PFTS: 0
Maturity
7/27/2011
8/10/2011
9/28/2011
11/23/2011
2/22/2012
3/21/2012
4/11/2012
6/13/2012
9/12/2012
10/31/2012
12/5/2012
12/12/2012
2/20/2013
3/27/2013
4/17/2013
1/29/2014
4/30/2014
8/21/2015
8/24/2015
8/25/2015
2/14/2012
12/5/2012
7/23/2013
2/23/2016
9/24/2012
1/18/2013
1/24/2013
2/7/2013
2/25/2013
3/14/2013
5/25/2013
11/4/2013
12/9/2013
9/24/2015
1/22/2016
2/8/2016
3/17/2016
Mod.
Months
Issue
Put option YTM (Mid) duration,
to
volume,
years
maturity UAH mn
0.1
1.2
6.7%
0.1
1.6
6.7%
0.3
3.3
7.0%
0.4
5.1
7.1%
0.6
8.2
7.8%
0.7
9.1
7.9%
0.7
9.8
7.8%
0.9
11.9
8.1%
1.1
14.9
8.8%
1.2
16.6
8.9%
1.3
17.7
9.1%
1.3
18.0
9.1%
1.4
20.3
9.2%
1.5
21.5
9.2%
1.6
22.2
9.4%
2.1
31.7
10.2%
2.4
34.8
10.3%
1.9
50.7
10.2%
1.9
50.8
10.2%
1.9
50.8
10.2%
0.6
7.9
250
14.0%
12/7/2011
1.3
17.7
50
13.5%
7/26/2011
1.7
25.4
45
16.0%
2/28/2012
3.2
56.9
50
15.0%
9/26/2011
1.1
15.3
100
11.5%
1.4
19.2
750
11.7%
10/27/2011
1.4
19.4
140
11.5%
1.4
19.9
200
10.5%
1.5
20.5
500
12.0%
3/15/2012
1.5
21.0
195
12.0%
1.6
23.4
200
11/26/2011
11.5%
5/7/2012
1.9
28.9
100
13.0%
12/12/2011
2.0
30.0
30
15.0%
9/29/2011
3.0
51.8
100
12.0%
1/26/2012
3.1
55.8
100
13.5%
2/7/2012
3.3
56.4
50
14.0%
3/22/2012
3.2
57.7
100
15.5%
Source: Cbonds, NRG calculaons
Figure 10. Local currency bonds yield map

18%
Bus iness Standard Bank,
1-C
*16%
Repayment to be made within 7 days following the auconGa
date
stated
lychina,
1-Dabove
Ukrtelecom, 2-L
14%
Globinskiy
mya s okombinat, 1-A
Akta Ba nk, 1-
Mega bank, 1-G
Pla tinum Bank, 2-A
12%
Prominvestbank, 1-B
Hres chatyk, 1-H
Sberbank of Russia,
10%
Os cha dbank, 1-B
Credit Dnepr, 1-F
VAT-bonds
OVGZ yield curve
8%
6%
4%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
June 20, 2011

Figure 11. Outstanding local government bonds
ISIN
Volume of issue
Type of bonds
Maturity date
Coupon
Coupon
frequency
655 000 000
Zero-coupon
UA4000105423
1 350 000 000
Zero-coupon
13-Jul -11
0.00%
UA4000076780
2 809 500 000
Zero-coupon
27-Jul -11
0.00%
UA4000086300
22-Jun-11
0.00%
UA4000110068
415 000 000
Zero-coupon
10-Aug-11
0.00%
UA4000083075
956 500 000
Zero-coupon
31-Aug-11
0.00%
UA4000064802
800 000 000
Coupon
14-Sep-11
11.00%
UA4000114128
610 000 000
Zero-coupon
14-Sep-11
0.00%
UA3B00022509
4 502 000 000
Coupon
28-Sep-11
9.50%
UA4000061089
381 775 000
Coupon
12-Oct-11
25.14%
UA4000116297
100 000 000
Zero-coupon
12-Oct-11
0.00%
UA4000107502
1 460 000 000
Zero-coupon
26-Oct-11
0.00%
UA4000062012
1 390 800 000
Coupon
23-Nov-11
20.00%
UA4000114599
225 000 000
Zero-coupon
14-Dec-11
0.00%
UA4000048219
2 904 000 000
Coupon
22-Feb-12
15.60%
UA4000114136
1 140 000 000
Zero-coupon
7-Mar-12
0.00%
UA4000064810
800 000 000
Coupon
14-Mar-12
11.00%
UA4000064893
1 858 088 000
Coupon
21-Mar-12
13.00%
UA4000053920
700 000 000
Coupon
4-Apr-12
15.70%
UA4000053912
1 390 880 000
Coupon
11-Apr-12
15.70%
UA4000120794
145 000 000
Zero-coupon
6-Jun-12
0.00%
UA4000101018
1 000 000 000
Coupon
13-Jun-12
10.00%
UA4000063564
2 201 170 000
Coupon
12-Sep-12
20.00%
UA4000060883
1 169 840 000
Coupon
26-Sep-12
20.00%
UA4000063184
1 598 269 000
Coupon
17-Oct-12
9.95%
UA4000061451
1 417 840 000
Coupon
31-Oct-12
20.00%
UA4000063192
1 598 270 000
Coupon
5-Dec-12
9.95%
UA4000107510
947 180 000
Coupon
12-Dec-12
9.86%
UA4000103063
1 000 000 000
Coupon
19-Dec-12
10.10%
UA4000064018
971 000 000
Coupon
20-Feb-13
20.00%
UA4000065221
1 404 280 000
Coupon
20-Mar-13
15.00%
UA4000065429
334 900 000
Coupon
27-Mar-13
14.50%
UA4000116974
1 580 000 000
Coupon
17-Apr-13
9.24%
UA4000119473
525 000 000
Coupon
22-May-13
9.00%
UA4000066195
1 007 000 000
Coupon
17-Jul -13
13.00%
UA4000081202
949 500 000
Coupon
7-Aug-13
12.00%
UA4000066880
1 403 165 000
Coupon
4-Sep-13
12.50%
UA4000079891
76 000 000
Coupon
25-Sep-13
12.00%
UA4000048508
745 002 000
Coupon
23-Oct-13
12.00%
6-Nov-13
12.00%
2
2
UA4000048391
415 001Bloomberg,
000
Source:
Ministry of Finance,
NRGCoupon
calculaons
UA4000108823
2 705 000 000
Coupon
29-Jan-14
10.97%
UA4000115117
100 000 000
Coupon
26-Mar-14
10.75%
UA4000118871
1 046 500 000
Coupon
30-Apr-14
10.13%
UA4000051403
1 000 000 000
Coupon
14-May-14
15.60%
UA4000063200
1 598 269 000
Coupon
11-Jun-14
9.75%
UA4000063218
1 598 270 000
Coupon
12-Nov-14
9.75%
UA4000063226
1 598 270 000
Coupon
17-Dec-14
9.75%
UA4000064026
1 000 000
Coupon
21-Jan-15
18.50%
UA4000064166
451 875 000
Coupon
28-Jan-15
15.00%
UA4000092100
500 000 000
Coupon
18-Mar-15
9.50%
UA4000078141
48 453 000
Coupon
27-Jul -15
5.50%
UA4000082531
2 047 815 000
Coupon
21-Aug-15
5.50%
UA4000082622
8 304 873 000
Coupon
24-Aug-15
5.50%
UA4000083059
6 041 548 000
Coupon
25-Aug-15
5.50%
June 20, 2011

Figure 11. Outstanding local government bonds (con%nued)
ISIN
Volume of issue
Type of bonds
Maturity date
Coupon
Coupon
frequency
UA4000048789
2 000 000 000
Coupon
18-Nov-15
9.50%
UA4000050090
4 000 000 000
Coupon
16-Dec-15
9.50%
UA4000092118
1 500 000 000
Coupon
17-Feb-16
9.50%
UA4000050199
3 885 000 000
Coupon
13-Apr-16
9.50%
UA4000050017
3 700 000 000
Coupon
15-Jun-16
9.50%
UA4000092126
1 500 000 000
Coupon
29-Jun-16
9.50%
UA4000092134
1 500 000 000
Coupon
13-Jul-16
9.50%
UA4000106181
680 000 000
Coupon
13-Jul-16
9.50%
UA4000107528
12 600 000
Coupon
20-Jul-16
12.50%
UA4000050207
3 885 000 000
Coupon
14-Sep-16
9.50%
UA4000092142
1 200 000 000
Coupon
12-Apr-17
9.50%
UA4000057111
1 033 333 000
Coupon
31-May-17
9.50%
UA4000057277
1 188 431 000
Coupon
7-Jun-17
9.50%
UA4000057301
936 171 000
Coupon
14-Jun-17
9.50%
UA4000058606
3 100 000 000
Coupon
19-Jul-17
9.50%
UA4000092167
1 200 000 000
Coupon
23-Aug-17
9.50%
2
2
UA4000058614
1 658 263 000
Coupon
4-Oct-17
9.50%
UA4000061790
1 400 000 000
Coupon
28-Ma r-18
9.50%
UA4000055586
1 000 000 000
Coupon
9-May-18
9.50%
UA4000057319
936 172 000
Coupon
30-May-18
9.50%
UA4000057129
1 033 333 000
Coupon
6-Jun-18
9.50%
UA4000057285
1 188 431 000
Coupon
13-Jun-18
9.50%
UA4000058622
3 100 000 000
Coupon
18-Jul-18
9.50%
UA4000062525
650 000 000
Coupon
12-Sep-18
9.50%
UA4000058630
1 355 345 000
Coupon
3-Oct-18
9.50%
UA4000059323
1 000 000 000
Coupon
31-Oct-18
9.50%
UA4000059353
1 000 000 000
Coupon
31-Oct-18
9.50%
UA4000064307
1 000 000 000
Coupon
21-Nov-18
9.50%
UA4000061808
1 400 000 000
Coupon
6-Feb-19
9.50%
UA4000064315
1 294 999 000
Coupon
13-Ma r-19
9.50%
2
2
UA4000058648
1 933 060 000
Coupon
3-Apr-19
9.50%
UA4000057293
1 188 432 000
Coupon
29-May-19
9.50%
UA4000057327
936 172 000
Coupon
5-Jun-19
9.50%
UA4000057137
1 033 334 000
Coupon
12-Jun-19
9.50%
UA4000058655
3 100 000 000
Coupon
17-Jul-19
9.50%
UA4000064323
1 000 000 000
Coupon
17-Jul-19
9.50%
UA4000063119
1 276 191 000
Coupon
21-Aug-19
9.50%
UA4000064349
1 295 000 000
Coupon
25-Sep-19
9.50%
UA4000064117
900 000 000
Coupon
16-Oct-19
9.50%
UA4000064125
900 000 000
Coupon
20-Nov-19
9.50%
UA4000063010
950 000 000
Coupon
11-Ma r-20
9.50%
UA4000061816
1 400 000 000
Coupon
15-Apr-20
9.50%
UA4000063127
1 500 000 000
Coupon
17-Jun-20
9.50%
UA4000063028
949 981 000
Coupon
12-Aug-20
9.50%
UA4000061824
1 400 000 000
Coupon
4-Nov-20
9.50%
UA4000063135
1 500 000 000
Coupon
9-Jun-21
9.50%
UA4000063143
1 500 000 000
Coupon
1-Jun-22
9.50%
June 20, 2011
Eurobonds Monitor
Ukrainian Eurobonds came under pressure last week as fears over a
fallout from the Greek debt crisis weighed on the bond markets.
Uncertainty over the resoluon of the debt crisis in Greece once again
stoked fears of an increasingly probable default and connued to weigh on
bond markets, taking a toll on Ukrainian Eurobonds. As a result, the 5-year
CDS rates on Ukraine rose by 2.4 basis points to 460.4 bps, while the yield
on Ukraine-12 rose by 28 basis points to 3.84%, the YTM on Ukraine-17
increased by 24 basis points to 6.65%, and yield on Ukraine-16 climbed by
22 bps to .
Greek debt crisis connues to ba9er the

markets
The new issue Ukraine-16 (2) is now trading at 99.5% of par with a yield of
6.37%. The rise in yield was primarily due to the negave dynamics of the
market, and we see a potenal for price appreciaon with a reducon of
volality on the world bond markets.
Figure 12. Top and BoFom Performers, YTM
Figure 13. 5Y CDS Dynamics

2 500
Kiev-11
Ukraine-12
2 000
MHP-11
Ferrexpo-16
Kiev-12
1 500
Avangard-15
1 000
VAB-14
500
FUIB-14
Ukrexim-16
F&C-14
Jun-10
-1.0 -0.5 0.0 0.5
0.0
0.5
1.0
Aug-10
Oct-10
Ukraine
Italy
1.5
Source: Bloomberg, NRG Calculaons
Dec-10
Feb-11
Apr-11
Russia
Argentina
Jun-11
Kazakhstan
Greece
Source: Bloomberg
The yield on issues of the corporate segment followed the sovereigns. The
weeks worst performers Vanguard-15 (yield rose by 32 bps to 10.45%);
Ferrexpo-16 (yield increased by 32 bps to 7.33%, and Menvest-15 (YTM
rose by 26 basis points to 8.7%) .
Last week, the city of Kiev began a road show of Eurobonds for a total
amount of USD 300 mn. Kiev authories intend to raise funds at 7.8% for a
5-year tenor. A large part of the proceeds of the issue (USD 200 mn) will
be spent on the repayment of the maturing loan, while the remaining
funds (USD 100 mn) will be directed towards nancing of socio-economic
Figure 14. YTM of Ukrainian Sovereign Eurobonds, %
Figure 15. YTM of Ukrainian non-sovereign Eurobonds, %

16
10
14
12
10
8
6
2
0
Jun-10
2
0
Jun-10
Aug-10
Oct-10
Ukraine-12
Dec-10
Ukraine-15
Source: Bloomberg
Feb-11
Apr-11
Jun-11
Aug-10
Kyiv-12
Oct-10
Dec-10
Alfa Bank-12
Feb-11
MHP-15
Apr-11
Jun-11
Ukreximbank-16
Ukraine-17
Source: Bloomberg
June 20, 2011

development programs in Kiev. The City of Kiev is scheduled to repay a
maturing Eurobond in the total amount of USD 200 mn, issued in 2004 at
8.625% per annum. Fitch Rangs agency assigned the upcoming bond
issue a long-term foreign currency rang "B-(exp)", while Moody's
assigned "B2" / forecast "Stable".
Figure 16. Ukrainian Eurobonds weekly dynamics
0.30
Ukraine-12
0.25
Ukraine-17
Ukraine-16
YTM, %
0.20
Ukraine-15
0.15
0.10
Ukraine-13
0.05
Ukraine-20
Ukraine-21
0.00
0.0
1.0
2.0
3.0
4.0
Modified duration, years
5.0
6.0
7.0
June 20, 2011

Figure 17. Ukrainian Eurobonds yield map
18%
VAB-14
16%
F&C-14
14%
Interpipe-17
12%
YTM, %
Mriya-16
Avangard-15
10%
FUIB-14
Alfa Bank-12
Privatbank-16
MHP-15Privatbank-15
8%
DTEK-15
Kiev-12
Ukreximbank-15
Ukraine-15
Naftogaz-14
Privatbank-12
6%
Kiev-15
Ukreximbank-16
Oschadbank-16
Ferrexpo-16
Metinvest-15
Metinvest-18
Ukrinf-17
Ukrinf-18
Ukraine-21
Ukraine-15**
Ukraine-20
Ukraine-16
Ukraine-17
Ukraine-16-2
Ukreximbank-12
Ukraine-13
MHP-11
Ukrsibbank-11
Ukreximbank-11
4%
Ukraine-12
Ukrsibbank-11
2%
Kiev-11
0%
0
3
Modified duration, years
June 20, 2011

Figure 18. Ukrainian Eurobonds
Rating
Mod.
duration,
years
ISIN
Ukraine-12
B2/B+/B
0.9
Ukraine-13
B2/B+/B
1.8
Ukraine-15**
B2/B+/B
3.7
Issue
Spread to
spread, Fair spread,
sovereign
bps
bps
curve, bps
Volume,
USD mln
Coupon*
Maturity
Price (Bid)
Price (Ask)
Price (Mid)
YTM (Bid)
YTM (Ask)
YTM (Mid)
XS0305394941
500
6.39%
6/26/2012
102.0
103.0
102.5
4.3%
3.39%
3.8%
-39
-39
XS0170177306
1000
7.65%
6/11/2013
105.1
105.4
105.3
4.9%
4.73%
4.8%
16
16
XS0232329879
600
4.95%
10/13/2015
92.3
92.7
92.3
7.1%
6.96%
7.1%
138
113
25
Ukraine-15
B2/B+/B
3.6
XS0543783434
500
6.88%
9/23/2015
102.9
103.7
103.3
6.1%
5.87%
6.0%
36
36
Ukraine-16
B2/B+/B
4.5
XS0276053112
1000
6.58%
11/21/2016
100.7
101.1
100.9
6.4%
6.34%
6.4%
20
20
Ukraine-16-2
B2/B+/B
4.2
XS0638552942
1250
6.25%
6/17/2016
99.1
99.9
99.5
6.5%
6.28%
6.4%
36
36
Ukraine-17
B2/B+/B
5.1
XS0330776617
700
6.75%
11/14/2017
100.1
100.9
100.5
6.7%
6.57%
6.6%
Ukraine-20
B2/B+/B
6.5
XS0543783194
1500
7.75%
9/23/2020
103.1
103.8
103.5
7.3%
7.17%
7.2%
-41
-41
B2/B+/B
6.5
XS0594390816
1500
7.95%
1/23/2021
103.7
104.4
104.1
7.4%
7.30%
7.4%
-31
-31
B2/CCC+/B-
0.1
XS0197093965
200
8.63%
7/15/2011
100.0
100.8
100.4
7.7%
-4.22%
1.7%
-215
-365
150
Ukraine-21
Kiev-11
Kiev-12
B2/CCC+/B-
1.3
XS0332748077
250
8.25%
11/26/2012
101.1
102.6
101.9
7.4%
6.29%
6.9%
244
44
200
Kiev-15
B2/CCC+/B-
3.6
XS0233620235
250
8.00%
11/6/2015
97.0
99.1
98.1
8.8%
8.24%
8.5%
293
68
225
Ukreximbank-11
B1/NR/B
0.2
XS0267147881
500
7.65%
9/7/2011
100.5
101.0
100.8
4.9%
2.84%
3.9%
-4
-54
50
Ukreximbank-12
B1/NR/B
1.2
XS0230955642
250
6.80%
10/4/2012
101.9
102.5
102.2
5.3%
4.78%
5.0%
67
-8
75
Ukreximbank-15
B1/NR/B
3.2
XS0503737461
500
8.38%
4/27/2015
104.7
105.3
105.0
6.9%
6.80%
6.9%
147
72
75
Ukreximbank-16
B1/NR/CCC
3.7
XS0243733127
125
8.40%
2/9/2016
92.6
93.5
93.0
7.7%
7.48%
7.6%
192
67
125
Oschadbank-16
B2/NR/B
3.8
XS0594294695
500
8.25%
3/10/2016
101.7
102.3
102.0
7.8%
7.64%
7.7%
200
100
100
Naftogaz-14
NR/NR/B
2.8
XS045920712
1595
9.50%
9/30/2014
109.4
109.9
109.6
6.3%
6.12%
6.2%
105
80
25
Ukrinf-17
B2/NR/NR
4.9
XS0556327822
568
8.38%
11/3/2017
104.3
105.6
104.9
7.5%
7.26%
7.4%
95
70
25
Ukrinf-18
B2/NR/NR
5.2
XS0619856460
690
7.40%
4/20/2018
98.6
99.1
98.8
7.7%
7.57%
7.6%
94
69
25
50
Ukrsibbank-11
B1/NR/B
0.1
XS0377629547
250
9.25%
8/4/2011
100.6
101.0
100.8
4.3%
0.7%
2.5%
-137
-187
Ukrsibbank-11
B1/NR/B
0.5
XS0278743710
500
7.75%
12/21/2011
101.5
102.1
101.8
4.6%
3.4%
4.0%
-3
-53
50
Privatbank-12
B1/NR/B
0.6
XS0285182266
500
8.00%
2/6/2012
100.9
101.4
101.2
6.5%
5.7%
6.1%
198
98
100
Privatbank-15
B1/NR/B
3.4
XS0543744535
200
9.38%
9/23/2015
103.0
103.6
103.3
8.5%
8.3%
8.4%
293
168
125
Privatbank-16
B1/NR/NR
3.6
XS0242939394
150
8.75%
2/9/2016
86.8
88.2
87.5
9.4%
9.0%
9.2%
354
154
200
Alfa Bank Ukraine-12*** NR/B-/NR
1.0
XS0441089926
841
13.00%
7/30/2012
103.9
104.4
104.1
9.2%
8.77%
9.0%
474
274
200
Finance & Credit-14
2.1
XS0275465879
100
10.50%
1/25/2014
89.5
91.9
90.7
15.6%
14.3%
14.9%
1016
366
650
350
Caa1/NR/NR
B2/NR/NR
2.8
XS0287015787
275
11.00%
12/31/2014
104.6
105.4
105.0
9.4%
9.2%
9.3%
412
62
VAB-14
Caa1/NR/WD
2.4
XS0303241615
125
10.50%
6/14/2014
85.0
89.0
87.0
17.0%
15.15%
16.1%
1114
414
700
MHP-11
B3/NR/B
0.4
USL6366MAA10
250
10.25%
11/30/2011
102.4
103.3
102.8
4.7%
2.7%
3.7%
-29
-154
125
MHP-15
B3/NR/B
3.1
USL6366MAB92
585
10.25%
4/29/2015
106.7
107.3
107.0
8.2%
8.0%
8.1%
275
125
150
Avangard-15
NR/NR/B
3.4
XS0553088708
200
10.00%
10/29/2015
98.0
98.9
98.4
10.6%
10.3%
10.4%
494
94
400
FUIB-14***
NR/B/B-
3.6
XS0559140875
250
10.95%
3/30/2016
101.1
101.7
101.4
10.6%
10.5%
10.6%
496
46
450
NR/NR/NR
4.1
XS0310283709
200
10.25%
8/2/2017
88.0
91.2
89.6
13.2%
12.3%
12.8%
679
179
500
DTEK-15
B2/NR/B
3.2
USN2800PAA59
500
9.50%
4/28/2015
106.9
107.6
107.3
7.4%
7.2%
7.3%
192
92
100
Metinvest-15
B2/NR/B
3.2
XS0511379066
500
10.25%
5/20/2015
110.3
111.0
110.7
7.2%
7.0%
7.1%
168
68
100
Metinvest-18
B2/NR/B
4.9
XS0591549232
750
8.75%
2/14/2018
104.5
105.1
104.8
7.9%
7.8%
7.8%
136
36
100
Ferrexpo-16
B3/B+/B
3.9
XS0614325586
500
7.88%
4/7/2016
101.8
102.5
102.2
7.4%
7.24%
7.3%
153
53
100
Mriya-16
Interpipe-17
*S/A Coupon **The issue is EUR nominated with annual coupon ***Quarter coupon; **** the issue is UAH-denominated
Source: Bloomberg, NRG calculaons
June 20, 2011

Figure 19. Credit metrics of Ukrainian companies
ST Debt/
EBITDA
Net debt/
LT debt Net debt
margin, %
EBITDA (x)
(x)
MHP
MHPSA Agriculture
1Q2011
991.0
332.0
33.5
0.3
713.6
2.1
Mriya Agro Holding MRIYA
Agriculture
1Q2011
310.0
179.0
57.7
2.5
67.5
0.1
Avangard
AVINPU Consumer goods 4Q2010
439.7
167.4
38.1
0.2
103.9
0.6
Metinvest
METINV Metals
3Q2010
8 443.0
2 028.0
24.0
0.5
2 298.0
1.1
Ferrexpo
FXPOLN Metals
4Q2010
1 294.9
579.8
44.8
0.1
104.4
0.2
DTEK
DTEKUA Coal
4Q2010
3 057.9
730.9
23.9
0.3
553.9
0.8
Naftogaz of Ukraine NAFTO
Oil & Gas
4Q2009
8 157.0
-1 112.2
neg.
2.1
5 026.1
Neg.
Notes: Data in the table is are based on LTM (Last 12 months); Int.exp. - interest expense; ST - Short-term; LT - Long-term
Sources: Bloomberg, Company data, NRG calculations
Issuer
Ticker
Sector
Filing
Revenues
EBITDA
EBITDA/
Int.exp.
5.5
6.2
7.1
17.5
22.8
12.7
Neg.
Debt/
equity
(x)
1.2
0.9
0.3
n.a.
0.7
0.8
2.7
Current
ratio
2.8
3.5
5.9
n.a.
3.5
0.5
2.9
Figure 21. Leverage ra%os
Figure 20. EBITDA margins

70.0
3.0
60.0
2.5
50.0
2.0
40.0
1.5
30.0
1.0
20.0
0.5
10.0
0.0
0.0
MHP
Mriya
Avangard Metinvest Ferrexpo
DTEK
Naftogaz
MHP
Mriya
EBITDA margin, %
DTEK
Naftogaz
DTEK
Naftogaz
Net debt/EBITDA (x)
Figure 22. Interest coverage
Figure 21. Debt-to-equity

3.0
25.0
2.5
20.0
2.0
15.0
1.5
10.0
1.0
5.0
0.5
0.0
0.0
MHP
Mriya

EBITDA/ Int.exp.
DTEK
Naftogaz
MHP
Mriya

Debt/Equity (x)
June 20, 2011
Glossary
Average dura%on- duraon calculated from all cash-ows obtained from
the bonds sold at the aucon. Yield-to-maturity, price and each cash-ow
(coupons and principal) are calculated on a per-bond basis.
Average yield A yield-to-maturity calculated from all cash-ows obtained from the bonds sold at the aucon and versus the total price paid
per bond to acquire them. Price and each cash ow (coupons and principal) are calculated on a per-bond basis.
Basis point (bp) One-hundredth of a percentage point or 0.01%.
BoP Balance of Payments.
Cer%cate(s) of Deposit (CD(s) Short-term money market instruments
that allow the NBU to absorb the extra liquidity from the local banks.
CDS - A swap designed to transfer the credit exposure of bonds
(sovereign, corporate or municipal) between pares.
CRA Credit rang agency. This term can refer to internaonal companies as Moodys, Standard & Poors and Fitch as well as naonal companies Credit-Rang Ukraine and others.
KievPrime rate - An independent reference rate calculated daily by Reuters based on oered inter-bank deposit rates in UAH as quoted by leading parcipants in the Ukrainian money market. KievPrime is calculated
for overnight, one week, 1-, 2- and 3-month tenors, which are provided
by the contributor banks daily at 12pm.
MoE - Ministry of Economic Development and Trade of Ukraine.
MoF Ministry of Finance of Ukraine.
NBU Naonal Bank of Ukraine, the central bank of Ukraine.
OVGZ Local-currency government bond.
Percentage point (ppt) One percent, 1%.
Recapitaliza%on bonds Local currency government bonds, which was
issued with the purpose of recapitalizing companies, owned by the state
(for example, Na<ogaz, Ukreximbank, Oschadbank).
UAH The hryvnia, Ukrainian naonal currency.
UAS Ukrainian accounng standards.
VAT OVGZ Local currency bond, which was issued in order to repay the
governments accumulated arrears on VAT (value added tax) refunds to
domesc exporters.
YTM (yield-to-maturity) The rate of return that creates the present
value of cash ows obtained from holding a bond equal to the price of
bond.
June 20, 2011

Contact Informa%on
Kiev
4 Muzeiny Pereulok, 6th Floor
Kiev, Ukraine 001001
New York
1450 Broadway, 39th oor
New York, NY 10018
Michail Levchenko
CEO
m.levchenko@nrg-capital.com.ua
Phone: +38-044-591-1515
Fax: +38-044-591-1293
Phone: +1-212-461-32-72
Vadim Bilokon
Execuve Director
v.bilokon@nrg-capital.com.ua
info@nrg-capital.com.ua
www.nrg-capital.com.ua
Sales & Trading
+38-044-591-1291
Yasha Raphael
yasha@nrg-capital.com.ua
Head of Internaonal Sales
Alex Bart
alex.bart@nrg-capital.com.ua
Internaonal Sales
__________________________________________________
Sergei Lyunenko
s.lyunenko@nrg-capital.com.ua
Head of Sales and Trading
Alexey Dyachenko
a.dyachenko@nrg-capital.com.ua
Equity Trader
Evgeniy Petrishchenko e.petrishchenko@nrgcapital.com.ua
Equity Trader
Oleksandr Vorobey
av@nrg-capital.com.ua
Fixed Income Trader
Yuri Tovstenko
y.tovstenko@nrg-capital.com.ua
Fixed Income Trader
Anna Pavlova
a.pavlova@nrg-capital.com.ua
Local Sales
Research
research@nrg-capital.com.ua
Maksim Shtepa
m.shtepa@nrg-capital.com.ua
Head of Research, Strategy, Machinery
Yaroslav Udovenko
y.udovenko@nrg-capital.com.ua
Agriculture & Consumer goods
Dmytro Shevchenko
d.shevchenko@nrg-capital.com.ua
Fixed income, Economy, Banks
Evgenia Radomska
e.radomska@nrg-capital.com.ua
Ulies, Oil & Gas, Telecommunicaons
Konstann Meselevskiy
k.meselevskiy@nrg-capital.com.ua
Metals & Mining
Olena Stray
o.stray@nrg-capital.com.ua
Research assistant

NRG Fixed Income Weekly

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Ukraine/Fixed Income

June 20, 2011

Ukrainian Bonds: Weekly Review

Key market data

Banking system liquidity remained unchanged, while interest rates

Domes%c Bond Market Overview

Eurobond Market Overview

Source: Bloomberg, NBU, Ministry of Finance

Source: Ministry of Finance, NRG calculaons

Ukrainian Bonds: Weekly Review

Eurobonds market: we recommend to pay a,enon to the new issue

VAT-OVGZ yield dynamics

Domesc bond market: we recommend to buy: a) government bonds with

June 20, 2011

Money Markets Monitor

Figure 2. Money market rates, %

Banks' balances with Centr. Bank, UAH bn (LS)

Source: Naonal Bank of Ukraine, Bloomberg

As a result of the stabilizaon of the banking sector liquidity at the level of

But interest rates on the interbank market

Figure 3. NBU CDs redemp%on schedule, UAH mn

Source: Naonal Bank of Ukraine, NRG calculaons

Ukrainian Bonds: Weekly Review

Restoraon of the banking sector liquidity

June 20, 2011

Domestic Bond Monitor

Figure 5. Primary auc%on weighted average yields, %

Dema nd, UAH mn

Wei ghted a vg. yi el d

Funds ra is ed, UAHmn

Source: Ministry of Finance, NRG calculaons

Source: Ministry of Finance, NRG calculaons

The Ministry of Finance connued, albeit

Source: Ministry of Finance, NRG calculaons

Ukrainian Bonds: Weekly Review

June 20, 2011

The Ministry of Finance remains in a

Secondary market dynamics remain unchanged

Figure 7. Government renancing needs (debt repayment

Ukrainian Bonds: Weekly Review

June 20, 2011

Days to Volume of bids Volume of bids Total volume

250 000 000

225 000 000

415 000 000

218 504 250

105 000 000

1 263 000 000

UA4000114128 15-Mar-11 9/14/2011

730 000 000

1 040 000 000

UA4000108823 15-Mar-11 1/29/2014

1 640 000 000

1 375 000 000 2 705 000 000

300 000 000 1 330 000 000

303 357 000

550 000 000

550 000 000

532 280 600

1 000 000 000 1 000 000 000

923 895 550

10.7% 1 399 646 300

Source: Ministry of Finance, NRG calculaons

Eurobonds market: we recommend to pay a,enon to the new issue

Domesc bond market: we recommend to buy: a) government bonds with

Source: Naonal Bank of Ukraine, Bloomberg

As a result of the stabilizaon of the banking sector liquidity at the level of

Source: Naonal Bank of Ukraine, NRG calculaons

Restoraon of the banking sector liquidity

Source: Ministry of Finance, NRG calculaons

Source: Ministry of Finance, NRG calculaons

The Ministry of Finance connued, albeit

Source: Ministry of Finance, NRG calculaons