Ukraine places UAH 64 mln in local bonds
27 January 2016
Ukraine’s Finance Ministry placed successfully two issues of state hryvnia-denominated bonds amounting to UAH 64.1 mln in total on Jan. 26, according to its report. The first issue of UAH 44.1 mln had a nine-month maturity with an 18.5% average yield. The second issue of UAH 20.1 mln was placed with an 18-month maturity and a 19.5% average yield. With the recent placement, total MinFin proceeds from this year’s sales of UAH-denominated bonds reached UAH 249 mln. On the top of that, the Finance Ministry earlier raised USD 486 mln through the placement of domestic Eurobonds.
Alexander Paraschiy: With registered bids for UAH 230 mln at the latest tender, we see high demand for local bonds, which means that the market is gradually being revived. Banks still have a good alternative, with deposit certificates generating 18.72% in December. However, they appear to be seeking new opportunities. Given that budget surpluses are a thing of the past, the Finance Ministry will continue raising funds with state bonds throughout the year, with UAH 98.4 bln targeted for the local market.
With four bond placements made in January, a new yield curve for local bonds has formed, with an 18.5% yield for notes maturing the in 9-12 month range, 19.5% for those maturing in 18 months and 19.7% for notes maturing in 24 months.
