MinFin raises UAH 11 bln at the local bond auction

Ukraine’s Finance Ministry raised UAH 8.3 bln and USD
112 mln (UAH 11.4 bln in total equivalent) at its weekly bond auction on June
22 after raising UAH 8.0 bln in total equivalent at the auction a week ago. The
auction receipts came from the placement of 6M, 12M, 18M, 2Y, 3Y and 5Y UAH
bonds as well as 1Y USD bonds.

The rates for all the bonds remained unchanged
compared to last week.

The largest UAH receipts – UAH 3.5 bln – came from the
sale of 2Y bonds to all 14 bidders at 12.00%. MinFin satisfied 17 out of 18
bids for 1Y bonds for UAH 2.1 bln with a weighted average rate of 10.97%. In
addition, UAH 1.5 bln came from the sale of 18M bonds to all 14 bidders at
11.30%.

MinFin satisfied all bids for 6M, 3Y and 5Y bonds. In
particular, 18 participants bought 5Y bonds for UAH 643 mln with a rate of
12.59%, 13 bidders purchased 6M bonds for UAH 481 mln at 9.00%, and 11 bidders
bought 3Y bonds for UAH 135 mln at 12.30%.

MinFin satisfied all 27 bids for dollar denominated
bonds for USD 111.9 mln at 3.70%.

Evgeniya Akhtyrko: MinFin
changed the initial auction plan and enlarged the bond offer at the latest
auction by adding 5Y UAH bonds as well as USD bonds, which apparently helped to
increase the auction receipts. In particular, the offer of 5Y bonds likely
helped to attract more non-resident investors to the purchase.

Next week, MinFin plans to offer six types of UAH
denominated bonds with maturities ranging from three months to six years. The
receipts of the upcoming auctions will largely depend on whether or not
non-resident investors stay interested. If this holds, the government is likely
to raise UAH 8-12 bln next week.