KDPW and NDU join forces to establish new link with the Ukrainian market
04 January 2022 United Kingdom
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The Central Securities Depository of Poland (KDPW) and the National Depository of Ukraine (NDU) have signed an agreement to establish a direct operational link with the Ukrainian market.
The link with Ukraine will allow KDPW to open a depository account in the NDU system to make municipal bonds issued by the Ukrainian regional government available to foreign investors.
Until now, operational links with foreign central securities depositories (CSDs) have been built to enable the clearing and settlement of transactions in shares of companies that are dual-listed on the Warsaw Stock Exchange and foreign trading platforms.
However, the link with Ukraine will allow KDPW to open a depository account in the NDU system to make municipal bonds issued by the Ukrainian regional government available to foreign investors. In the future, the agreement may be extended to cover other financial instruments.
Currently, bond issues of Kyiv, Kharkiv and Lviv City Councils with a total face value of over 3.1 billion Ukrainian hryvnia (UAH) are in circulation in Ukraine.
Maciej Trybuchowski, president and CEO of KDPW, comments: “Since the beginning of the war, Poland has supported Ukraine’s efforts to protect the country’s sovereignty and territorial integrity. Poland’s authorities, private and state-owned enterprises and institutions are joining the plan to rebuild the war-time devastation.
“The agreement concluded between our CSDs is part of our support for the Ukrainian financial market and it paves the way for Ukrainian local governments to issue municipal bonds on international markets.”
Oleksiy Yudin, NDU’s chairman of the board, says: "Placement of Ukrainian municipal bonds on the European market will help to attract capital and create ways to increase the inflow of foreign investments to Ukraine. We are grateful to our Polish colleagues for the support of Ukraine that we felt during our joint work.”
“Those extremely difficult war months we actively worked to build a link that would expand the range of services for participants in the capital market of Ukraine. This initiative also contributes to the integration of Ukraine into the European financial space.”
The link with Ukraine will allow KDPW to open a depository account in the NDU system to make municipal bonds issued by the Ukrainian regional government available to foreign investors.
Until now, operational links with foreign central securities depositories (CSDs) have been built to enable the clearing and settlement of transactions in shares of companies that are dual-listed on the Warsaw Stock Exchange and foreign trading platforms.
However, the link with Ukraine will allow KDPW to open a depository account in the NDU system to make municipal bonds issued by the Ukrainian regional government available to foreign investors. In the future, the agreement may be extended to cover other financial instruments.
Currently, bond issues of Kyiv, Kharkiv and Lviv City Councils with a total face value of over 3.1 billion Ukrainian hryvnia (UAH) are in circulation in Ukraine.
Maciej Trybuchowski, president and CEO of KDPW, comments: “Since the beginning of the war, Poland has supported Ukraine’s efforts to protect the country’s sovereignty and territorial integrity. Poland’s authorities, private and state-owned enterprises and institutions are joining the plan to rebuild the war-time devastation.
“The agreement concluded between our CSDs is part of our support for the Ukrainian financial market and it paves the way for Ukrainian local governments to issue municipal bonds on international markets.”
Oleksiy Yudin, NDU’s chairman of the board, says: "Placement of Ukrainian municipal bonds on the European market will help to attract capital and create ways to increase the inflow of foreign investments to Ukraine. We are grateful to our Polish colleagues for the support of Ukraine that we felt during our joint work.”
“Those extremely difficult war months we actively worked to build a link that would expand the range of services for participants in the capital market of Ukraine. This initiative also contributes to the integration of Ukraine into the European financial space.”
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