Clearstream to connect Ukraine in 2019
03 October 2018 Kiev
Image: Shutterstock
Clearstream, Deutsche Börse Group’s international central securities depository (ICSD), has partnered with the National Bank of Ukraine (NBU) to make Ukrainian government securities eligible in Clearstream’s system.
The linkage is scheduled to launch in Q1 2019.
Clearstream said this will enable settlement of all government bonds denominated in the local currency (hryvnia) through its international system, improving efficiency to international standards while reducing costs for investors.
Clearstream added it is expected that making local government securities eligible through this system will increase demand for Ukrainian government bonds, thereby boosting their liquidity and attractiveness in the international market.
As a result, the Ukrainian government will benefit from a wider range of sources of long-term funding and a lower cost of borrowing, Clearstream said.
The ICSD also said the offering will improve the currency structure of public debt and transmission mechanism of the NBU’s monetary policy while contributing to the further development of the Ukrainian capital markets.
The move comes just weeks after Clearstream announced it would offer settlement, custody and asset servicing for selected Georgian corporate bonds, effective from 10 September 2018.
This is in addition to securities issued by the Government of Georgia and international financial institutions.
Yakiv Smolii, governor of the NBU, described the move as a significant step towards Ukraine becoming a fully-fledged participant in global capital markets.
He said: “Ukraine’s integration into the worldwide financial system will help to increase the inflow of foreign capital to the Ukrainian economy and will strengthen its financial stability.”
Philippe Seyll, co-CEO of Clearstream Banking, commented: “This [partnership] supports Clearstream’s broader strategy in the Commonwealth of the Independent States and Central Asian region.”
He added: “We are connecting emerging capital markets in the region to our global network. This is increasing their attractiveness to international investors by providing an efficient and stable post-trade environment.”
The linkage is scheduled to launch in Q1 2019.
Clearstream said this will enable settlement of all government bonds denominated in the local currency (hryvnia) through its international system, improving efficiency to international standards while reducing costs for investors.
Clearstream added it is expected that making local government securities eligible through this system will increase demand for Ukrainian government bonds, thereby boosting their liquidity and attractiveness in the international market.
As a result, the Ukrainian government will benefit from a wider range of sources of long-term funding and a lower cost of borrowing, Clearstream said.
The ICSD also said the offering will improve the currency structure of public debt and transmission mechanism of the NBU’s monetary policy while contributing to the further development of the Ukrainian capital markets.
The move comes just weeks after Clearstream announced it would offer settlement, custody and asset servicing for selected Georgian corporate bonds, effective from 10 September 2018.
This is in addition to securities issued by the Government of Georgia and international financial institutions.
Yakiv Smolii, governor of the NBU, described the move as a significant step towards Ukraine becoming a fully-fledged participant in global capital markets.
He said: “Ukraine’s integration into the worldwide financial system will help to increase the inflow of foreign capital to the Ukrainian economy and will strengthen its financial stability.”
Philippe Seyll, co-CEO of Clearstream Banking, commented: “This [partnership] supports Clearstream’s broader strategy in the Commonwealth of the Independent States and Central Asian region.”
He added: “We are connecting emerging capital markets in the region to our global network. This is increasing their attractiveness to international investors by providing an efficient and stable post-trade environment.”
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