Ukraine places USD 486 mln in local Eurobonds amid high demand
20 January 2016
Ukraine’s Finance Ministry sold USD 486 mln in domestic state bonds denominated in U.S. dollars on Jan. 19, according to its report. The 18-month bonds were placed with a 7.67% average yield. It was the first foreign currency bond issued domestically since July 21, 2015 when Finance Ministry attracted USD 205 mln through the placement of a one-year bond at an 8.79% yield. For 2015, the Finance Ministry placed locally dollar-denominated bonds worth USD 643 mln.
Alexander Paraschiy: Local Eurobonds were placed at a negative 200 bps spread to Ukraine’s international bonds (UKRAIN), indicating large demand for dollar-denominated securities on the internal market and domestic players’ limited ability to invest abroad. There were 28 bids for the bonds, which indicates that not only state banks (traditional buyers of such instruments in the past) were participating in the deal. We expect MinFin will intensify selling its domestic Eurobonds this year, to at least roll over USD 1.6 bln in local bonds that mature in 2016.
