ICU and Bloomberg host the ukrainian fixed income conference
ICU, an independent asset management, private equity and investment advisory firm specialising in Central and Eastern Europe, hosted The Ukrainian Fixed Income Conference in London on June 8, 2018.
Organised in collaboration with Bloomberg and held in Bloomberg’s new European headquarters in London, this year’s event was titled ‘Opportunity knocks: Ukraine’s local bond market’.
The conference featured a line-up of notable speakers including Oksana Markarova, Ukraine’s newly appointed Acting Minister for Finance, Oleg Churiy, Deputy Governor of the Bank of Ukraine, Mindaugas Bakas, CEO of National Depository of Ukraine and as well as presentations from the senior management teams of some of Ukraine’s largest corporates.
“Voting for Anti-corruption court which completes the formation of anti-corruption infrastructure is a historic decision for Ukraine,” said Oksana Markarova, Acting Minister of Finance for Ukraine. “We are awaiting a response from the IMF but confident the anti-corruption reforms we have implemented are compliant with the stipulations of IMF’s aid programme. Under my leadership in the Ministry, Ukraine will continue to cooperate with the IMF and our international partners. Our key priorities are macroeconomic stability, reducing fiscal risks, implementation of the reform agenda as well as ensuring efficient budget spending and economic growth.”
Deputy Governor of the National Bank of Ukraine Oleg Churiy outlined the regulator’s interest rate forecast as it relates to the implementation of structural reforms and cooperation with Ukraine’s official creditors.
“If reforms are implemented, cooperation with the IMF continues, and inflation decreases in line with our current forecast, we will have the opportunity for further FX liberalisation and for maintaining the key policy rate at the current level,” said the NBU Deputy Governor. “We considered an alternative scenario – one without reforms and without financial support from official creditors. If that scenario came to pass, and it led to increased risks for inflation, we would have to raise the key policy rate. In extreme cases, if it is required to maintain financial stability, we can consider the use of other instruments, for example, capital controls.”
Konstantin Stetsenko, Managing Partner, ICU, said:
“Ukraine is home to many well-run companies that need vital funding to grow successfully. Yet the country’s banking system is unable to provide the financing these leading corporates need. Foreign investment into our local bond market is one of the fastest ways improve growth opportunities and provoke wider economic change. The Ukrainian local bond market is rebounding from the 2014-2015 crisis and is offering relatively high returns on the back of an improved macroeconomic situation and foreign exchange regime, simplified market access for foreign investors, and rising demand for local currency funding from top tier domestic corporates.”
Mindaugas Bakas, CEO, National Depository of Ukraine said:
“The Institute of the nominee account in Ukraine is removing bureaucratic barriers and making it easier for non-residents to buy assets. For the first time it will be possible for non-resident investors to open accounts without coming to the country armed with documents and having to go through a complicated legal procedure. That whole process used to take over three months. The new process will take just 10 days. We will have greater cooperation with global custodians. For investors interested in the Ukrainian bond market, we are saying ‘we are open this Autumn.’”
ICU is an independent asset management, private equity and investment advisory firm specialising in the emerging markets of Central and Eastern Europe.
Founded in 2006 by senior investment professionals from ING, ICU is Ukraine’s leading asset manager. ICU currently manages over $500m in assets. Managing partners Makar Paseniuk and Konstantin Stetsenko are majority shareholders of ICU.
ICU’s veteran investment team has experience in private equity, high yield corporate debt,
distressed debt, restructurings and other special situations across a number of emerging markets. Investment decisions are supported by robust macroeconomic and sectoral analyses from the in-house team of research economists.
ICU aims to provide its clients with superior risk-adjusted returns across a number of asset classes. The firm is expanding its reach into key European markets via a combination of organic growth and acquisition and continues to expand the range its investment offerings.
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