MinFin bond auction receipts jump to UAH 2 bln

Ukraine’s Finance Ministry raised UAH 1.8 bln and USD
12.3 mln (the total equivalent of UAH 2.1 bln) at its weekly bond auction on
Feb. 8 after raising the total equivalent of UAH 0.2 bln last week. The auction
receipts came from the placement of 3M, 1Y, 1.5Y, 2Y, 3Y and 5Y UAH denominated
bonds as well as 2Y USD denominated bonds.

Around two thirds of all auction receipts – UAH 1.6
bln – came from the sale of 3M bonds to 28 bidders at 11.50% (the same rate as
two weeks ago). Ten bidders bought 2Y bonds for UAH 69 mln at 13.00%.

MinFin satisfied 14 out of 16 bids for 1Y bonds for
UAH 23 mln with a weighted average interest rate of 11.93% (up from
11.90% four weeks ago). In addition, 11 bidders bought 1.5Y bonds for UAH 23
mln at 12.00%. One bidder bought 5Y bonds for UAH 2 mln at 13.25% and two
bidders bought 3Y bonds for UAH 1 mln at 12.95%.

MinFin satisfied all 20 bids for 2Y USD bonds at
3.90%.

Evgeniya Akhtyrko: The reprieve
regarding the geopolitical situation around Ukraine resulted in some revival of
Ukraine’s local bond market. However, the lion’s share of UAH auction receipts
come from short-term bonds, and we don’t expect the market participants to
increase the purchase of long-term bonds any time soon.

Next week, MinFin is to offer six types of UAH
denominated bonds with terms of maturity ranging from six months to four years.
However, it’s very likely that the government will add USD denominated bonds to
the offer given the low sales of Eurobonds at the latest auction as well as the
redemption of local Eurobonds for USD 349 mln on Feb. 17.