Банк позитивних змін

Securities trading and custody services

For over twenty years, UKRSIBBANK has been providing the highest quality services in the Ukrainian securities market for both private and corporate customers. Being a primary dealer of the Ministry of Finance of Ukraine in the government securities market, UKRSIBBANK gives its customers an opportunity to take part in auctions for the placement of government domestic loan bonds (hereinafter referred to as – the “OVDP”). With many years of professional experience in the market and broad regional network, UKRSIBBANK provides prompt customer service throughout Ukraine.

As a professional securities market player, UKRSIBBANK offers the following services:

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Government securities

The Bank routinely stands to offer Ukraine local government bonds. Government bonds is a debt security for which a government guarantees to pay returns (periodic interest payments) and repay its value using the government budget funds. For each issue of government bonds, a unique number is assigned (i.e., an International Securities Identification Number — ISIN), which is a 12-character alphanumeric code (of both letters and numeric characters). All securities, issued in Ukraine, begin with «UA» to specify belonging to a particular country. Both legal entities and natural persons may invest in government bonds.Each bond has both market and face value. As opposed to the face one, the market value is constantly changing depending on the current market environment, interest rates, bonds demand and supply.

What kinds of government bonds exist?

Based on maturity:

  • long-term bonds — over five years;
  • mid-term bonds—one to five years;
  • short-term bonds— up to one year.

Based on the type of return payment:

  • interest-bearing bonds — throughout the whole maturity period, a government (issuer) makes a periodic interest payments (fixed by the Ministry of Finance of Ukraine) of a bond face value (coupon) to the bondholder;
  • discount bonds mean bonds issued with a discount, i.e. at a price which is lower of their face value, which are, however, repaid at their face value. Therefore, the bondholder return equals to the discount amount which is the difference between the purchase price and face value of a bond.

Based on the face value currency:

  • UAH;
  • USD;
  • Euro.

For more information on Government Domestic Loan Bonds maturity and face value currency, please visit the web-site of the Ministry of Finance of Ukraine.

How is return on government domestic loan bonds taxed?*

According to the Tax Code of Ukraine (hereinafter referred to as the “PKU”), the total taxable revenue of a resident individual-taxpayer does not include:

  • investment income from financial operations (Cl.165.1.52 of the PKU);
  • amount of revenues, gained by a taxpayer in the form of interest (Cl.165.1.2 of the PKU).

The Investment income and interest on Government Domestic Loan Bonds are only subject to the 1,5% military levy (Cl.1.7., Art. 161 of the PKU).

Specific features of OVDP

  • There are two types of OVDPs, issued by the Ministry of Finance of Ukraine: standard bonds (UAH-denominated) and foreign exchange-denominated bonds.
  • Payments on Foreign exchange-denominated OVDPs (coupon, face value repayment) are made in a foreign currency. The coupon is paid every 6 months.
  • Payments on standard OVDPs (coupon, face value repayment) are made in a national currency. The coupon is paid every 6 months.
  • A 100% guaranty by the government, regardless of the investment volume in bonds or type of investor (natural persons /legal entities, residents/non-residents).
  • No personal income tax related to the investments in government bonds (for the bank deposit, 18% of the revenue amount is paid).
  • Possibility to get a refund by selling bonds, if necessary.
  • Possibility to use them as a collateral.

Shares

UKRSIBBANK has great experience of structuring deals with large equity packages.

Our latest achievements

UKRSIBBANK was a broker in intergroup structuring of shareholder capital:

  • AB InBev Sun InBev Ukraine — in 2018 year.
  • Carlsberg Ukraine — in 2015 year.

Tariffs

Transaction Rate , UAH / %
For individuals For legal entities
Purchase / sale of bonds on the secondary market, purchase of OVDP on the primary market 0,05% of the amount of the transaction, but not less than 2 000 UAH 0,025% of the amount of the transaction, but not less than 2 000 UAH
Purchase / sale of other securities by arrangement, depending on the structure of the transaction
REPO operations - single agreement 6 000 UAH, 3 000 UAH per prolongation of REPO agreement
REPO operations: purchase /sale of securities by two separate agreements 3 000 UAH per agreement, 3 000 UAH per prolongation of REPO agreement

How to become our client

  1. Please visit the nearest branch of UKRSIBBANK in your city. For natural persons (private individuals) , only passport and Taxpayer Individual Number (TIN) is required.
  2. Open a account.
  3. Open a securities account.
  4. Conclude a Brokerage Agreement with UKRSIBBANK (optionally).
  5. Submit an application for the purchase/sale of selected securities.

The minimum purchase/sale transaction volume is UAH 500, 000 on the secondary market, USD 100,000 or an equivalent amount for OVDP purchase transaction on the primary market.

Useful links

Contacts

Viktoriia Nebeska
Tel.: (044) 201 22 74
viktoriia.nebeska@ukrsibbank.com

Platon Yachmenov
Tel.: (044) 230 48 54
Platon.yachmenov@ukrsibbank.com

Custody services

More the information available on ukrainian version of this page or by phone number:

(044) 537 50 38, 537 49 25
Svitlana Poltoratska — svitlana.poltoratska@ukrsibbank.com
Oleksandr Davydenko — oleksandr.davydenko@ukrsibbank.com