By KYIV. Dec 30 (Interfax-Ukraine) – The National Depository of Ukraine (NDU) and Poland’s KDPW have established a correspondent relationship (link) for conducting transactions "Delivery of securities without payment", which will allow cross-border transfers of Ukrainian municipal bonds, which are accounted for at the NDU.
"The agreement concluded between our central depositories is part of our support for the Ukrainian financial market and paves the way for Ukrainian local governments to issue municipal bonds on international markets," the press release of the National Depository quotes the words of the President of KDPW Maciej Trybuchowski.
KDPW will ensure that such Ukrainian securities are accounted for in the Polish depository system.
To date, issues of Kyiv, Kharkiv and Lviv city councils with a total nominal value of more than UAH 3.1 billion are in circulation in Ukraine.
According to Board Chairman of the National Depository Oleksiy Yudin, the placement of Ukrainian municipal bonds on the European market will help attract capital and create ways to increase the inflow of foreign investment in Ukraine.
"I am sure that the agreement between our institutions is the beginning of a long-term cooperation and will be useful for both the Ukrainian and Polish markets. Rebuilding Ukrainian cities and the economy will require significant financial resources, and the capital market should play an important role in this. We are very well prepared to this both infrastructurally and organizationally," Vice President of KDPW Slawomir Panasiuk said.
According to the press release, in 2020, KDPW passed authorization and received permission in accordance with European CSDR standards, confirming its compliance with the unified EU legal requirements for central securities depositories. An important aspect in building correspondent relations with the Polish depository was the passage of the necessary procedures and checks for the possibility of opening a correspondent account in accordance with the requirements of the CSDR by the National Depository.
NDU is currently working towards further expansion of correspondent relations with KDPW, including for the possibility of accounting for corporate bonds, as well as other financial instruments.
