A bond is a debt security under which the issuer undertakes to repay the principal at maturity and, for interest-bearing bonds, to pay periodic income. A bond's market value rarely equals its face value: it is driven by the issuer's credit quality, time to maturity, coupon rate, currency and liquidity. The Kanzas company provides independent bond valuations in Ukraine — for transactions, collateral, financial reporting, inheritance and litigation — covering both individual issues and securities portfolios.
What we value
- Ukrainian domestic government bonds, including those held by individuals;
- corporate bonds — coupon and discount, listed and over-the-counter;
- municipal bonds;
- project (target) bonds, including those issued to finance residential construction;
- Eurobonds of Ukrainian issuers.
For share valuations, promissory notes or mixed securities portfolios, see the dedicated pages.
When a bond valuation is required
- purchase or sale of bonds outside the organised market;
- pledging securities as loan collateral;
- inheritance and notarial procedures;
- contribution to charter capital;
- financial reporting, including IFRS fair value measurement;
- court proceedings and division of assets;
- transactions subject to the requirements of the Ukrainian securities regulator;
- liquidation of a portfolio-holding entity.
Valuation methodology
For debt securities the income approach dominates, with discounted cash flow as the principal method: future coupon payments and principal are discounted at a rate reflecting market yields and the issuer's credit risk. Discount bonds are valued by discounting the face value to the valuation date. The comparative (market) approach applies to actively traded issues, where exchange quotations and actual transactions serve as a direct market benchmark or a cross-check. Key value drivers are the issuer's credit quality — for corporate paper we analyse the issuer's financial condition — issue liquidity, time to maturity, currency of denomination and, for project bonds, the status of the underlying obligations.
Project bonds and residential construction
A distinct segment is target bonds issued by developers to finance housing, where redemption entails the transfer of an apartment or commercial premises. Valuations of such bonds are most often required in litigation — stalled construction, developer default or division of assets — as well as in secondary transactions. Value here depends not only on the bond's terms but on construction progress and the real estate market. A related service is the valuation of property rights to real estate under construction.
How the engagement is carried out
After the purpose and scope are agreed and the contract signed, the valuer identifies the subject securities on the basis of securities account statements and issue documentation, analyses the issuer's financial condition and the debt market, performs the calculations and issues a valuation report that is fully valid for notaries, banks, courts and state authorities in Ukraine. Standard engagements take from a few business days. Key documents include the issue prospectus or resolution, securities account statements, the issuer's financial statements for two to three years, coupon and redemption schedules and, for project bonds, documentation on the construction project.
Our experience
The Kanzas company has been valuing securities for more than 20 years. Our largest engagement in this field was the cooperation with the Deposit Guarantee Fund of Ukraine in 2015–2020: as part of the revaluation of insolvent banks' assets, we valued securities portfolios including bonds of a wide range of issuers. That experience covers paper of every credit quality, from government bonds to defaulted corporate debt. Our team includes appraisers holding international valuation certificates.
Questions and answers
How are government bonds valued for inheritance purposes? A valuation report as at the date of the testator's death is required for the notarial procedure. A securities account statement is sufficient — we complete such valuations quickly under a standard procedure.
How does the valuation of listed and unlisted bonds differ? For actively traded paper, quotations serve as the benchmark and the valuation confirms or adjusts them for trading volumes. For unlisted paper, value is derived under the income approach from issuer analysis — a more involved exercise.
How long is the valuation report valid? As a general rule, six months from the valuation date, unless specific legislation provides otherwise.
We value your time: standard bond valuations are completed within days, and every non-standard case receives individual attention. To discuss your project, email us or message us via your preferred messenger.
