MinFin raises UAH 3 bln at the local bond auction

Ukraine’s Finance
Ministry raised UAH 3.1 bln at its weekly bond auction on July 6 after raising
UAH 2.5 bln in total equivalent at the auction a week ago. The auction receipts
came from the placement of 1Y, 1.5Y,
2Y, 3Y and
5Y bonds.

The rates for most
of the bonds remained
unchanged compared to the most recent auctions. MinFin satisfied all bids for
all bonds.

Around half of all
auction receipts – UAH 1.5 bln – came from the sale of 2Y bonds to 17 bidders
with a weighted average interest rate of 12.06% (up from
12.00% last week).
MinFin also satisfied
26 bids for 1Y bonds at 10.99% for UAH 1.0 bln.

In addition, 14
bidders bought 3Y bonds at 12.30% for UAH 387 mln. The sale of 18M bonds to 13
bidders at 11.30% brought UAH 84 mln. On top of that, MinFin satisfied 16 bids
for 5Y bonds at 12.59% for UAH 81 mln.

Evgeniya Akhtyrko: The local bond market remains
slack. The latest auction brought tangible changes neither in volume of
receipts, nor in interest rates. The weak sales of 3Y and 5Y bonds implies that
the interest of nonresident investors in UAH bonds is not increasing.

Next week, MinFin plans to offer six types of UAH denominated bonds with
maturity ranging from three months to five years, as well as one-year USD
denominated bonds. The auction receipts are likely to go up, as the offer of
local Eurobonds usually helps to get higher collections.