Price of VRIs and eurobonds of Ukraine rises following news of withdrawal of Russian troops
After the news of the withdrawal of Russian troops on Thursday, April 22, the value of Ukraine's Value Recovery Instruments (VRI) jumped from 102.5% to 104.4%, and Eurobonds - rose by 0.8-2.3 percentage points (p.p.), depending on from the date of maturity, market participants have told Interfax-Ukraine.
In particular, the price of eurobonds maturing in 2033 increased by 2.3 percentage points, to 102.79%, and their profitability accordingly dropped below 7%, to 6.9%. "Shorter" eurobonds maturing in January 2023 gained 0.8 p.p. in price, to 106.62%, and their yield fell below 5%, to 4.73%.
Then the prices corrected, but not significantly, traders said.
At the same time, the current prices for eurobonds and GDP warrants are still noticeably lower than those that were at the beginning of February this year. In particular, then the price of GDP warrants reached 113.6%, and 2033 eurobonds - 109.5%, while 2023 eurobonds - 110.1%. However, then it began to decline, and profitability, respectively, grew under the influence of such factors as the delay in providing Ukraine with the next tranche and the situation on the world markets, to which the factor of a build-up of Russian troops near the southeastern border of Ukraine and in Crimea has recently been added.