Bonds become new Ukraine battleground after US backing

By Francesca Young
15 May 2014

The most politicised new issue for many years – Ukraine’s USAID-backed $1bn five year bond – could be followed by several more as the sovereign battles both the threat of civil war and a raft of redemptions this year and next. But lead managers run the risk of Russia shunning them on its rival future mandates, bankers have warned.

Ukraine’s deal, lead managed by JP Morgan and Morgan Stanley, inspired investors to call for more. “At the moment the bond just serves as a symbolic gesture of support from the US,” said one emerging markets portfolio manager in Florida. “But if there is more like this to ...

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