Clearstream facilitates conversion and repatriation of interest on UAH-denominated bonds for non-resident investors
Clearstream, the international central securities depository (ICSD) of Deutsche Börse Group, is further expanding its services for the Ukrainian capital market. As of 1 April, all interest payments on UAH-denominated sovereign bonds held by Clearstream carry an entitlement to foreign exchange. Holders of the securities paying an interest derived from government bonds now have the option to receive a credit in UAH or in USD.
The possibility of UAH repatriation is based on an updated regulation by the National Bank of Ukraine (NBU). This decision allows for the conversion of interest income derived from government bonds received after 1 April. The renewed facility to FX and repatriate interest income on UAH-denominated government bonds will further encourage non-resident investors to remain and become active investors in the local government bond market.
Clearstream is committed to support the Ukrainian capital market and the reconstruction of the country’s infrastructure and economy. As announced earlier this year, Clearstream plans to expand its existing link with additional asset classes. This step aims to enable cross-border investments and thereby improve liquidity in the domestic capital market. Clearstream initiated its link to the Ukrainian capital market for Ukrainian debt securities in 2019 and is the only ICSD and global custodian providing access to the local UAH-denominated government bond market.