Ukraine

Holders of newly nationalised PrivatBank’s Eurobonds are pushing back on the National Bank of Ukraine’s plans to bail-in the debt, but the government should not have to take on the liabilities of sophisticated lenders in event of a default. But it does need to be much clearer about its plans.

Emerging markets investors had piled $1bn of orders into Kernel’s five year dollar bond by lunchtime on Tuesday. The deal is their first opportunity since 2013 to buy fresh debt from Ukraine.

Kernel Holding has hired two international banks to work on a bond offering, the first corporate new issue from Ukraine since 2013.

After spending 2016 away from the high yield market, UK premium car maker Jaguar Land Rover returned on Tuesday to add euros to its all sterling and dollar debt.

Ukraine’s government on Monday nationalised troubled lender Privatbank, but questions are as yet unanswered for holders of outstanding Eurobonds which are expected to be bailed-in, according to frontier markets investment firm Exotix.

After almost two years away from the market, Thomas Cook opened a three day roadshow on Tuesday for a new euro deal, which will redeem its only sterling bond and portions of its 2020 euro notes.

Amid rough going for new IPOs this week, one of this year’s star IPO performers, Maisons du Monde, was back in the market on Wednesday night as the global coordinators waived the lock-up to let the leading shareholders make their first block trade in the stock. Thursday brought a substantial trade in Ferrexpo, which owns iron mines in Ukraine, which got done, though at a slightly reduced size.

Shares in ConvaTec, the UK medical supplies manufacturer, traded below issue price throughout Wednesday and closed flat, a day after the firm completed the largest IPO on the London Stock Exchange since Worldpay floated for £2.4bn in October 2015.

The IMF’s approval of a long-awaited disbursement of funds to Ukraine could help set the stage for an unguaranteed sovereign bond issue, local bankers said on Thursday.

Kernel — Podravka — Masisa — Fabory

Ukrainian food oil producer Kernel received oversubscription of about 40% in its latest $300m pre-export finance facility but chose to keep the loan at the target size.

Ukrainian energy company DTEK secured the approval of its bondholders to dispose of some $400m of assets which will enable it to cut its debt burden by 17% on June 30.