Clearstream is to connect the Ukrainian market to its network and make Ukrainian government securities eligible in its system, effective from 27 May.
Citi will act as cash correspondent bank and local operator of Clearstream’s account at the National Bank of Ukraine (NBU).
The connection will enable settlement of all government bonds denominated in the local currency hryvnia through the international system of Clearstream.
According to Clearstream, the Ukrainian government will benefit from a wider range of sources of long-term funding and a lower cost of borrowing, improving efficiency at international standards.
The offering will also improve the currency structure of public debt and transmission mechanism of the NBU monetary policy while contributing to the further development of the Ukrainian capital markets.
Jan Willems, head of global markets at Clearstream, commented: “We are looking forward to connecting the Ukrainian markets with our international customers. Being able to enter emerging markets via a stable post-trade environment is very attractive to investors all over the world.”
Oleg Churiy, deputy governor of the NBU, said: “The NBU launched the project on establishing correspondent relationships with Clearstream three years ago and now it has been officially implemented.”
He added: “Creating easy access for foreign investors to Ukrainian government securities will foster long-term investments in hryvnia instruments, reduce the state’s need for financing in foreign currency and respectively currency risks.”
