MinFin local bond auction receipts drop to UAH 8 bln
16 June 2021
Ukraine’s Finance Ministry raised UAH 6.0 bln and EUR
61 mln (UAH 8.0 bln in total equivalent) at its weekly bond auction on June 15
after raising UAH 19.1 bln in total equivalent at the auction a week ago. The
auction receipts came from the placement of 12M, 18M, 2Y, 3Y and 5Y UAH
denominated bonds as well as 1Y EUR bonds.
The largest UAH receipts – UAH 2.1 bln – came from the
sale of 1Y bonds to 16 out of 19 bidders with a weighted average interest rate
of 10.97%. MinFin satisfied 30 out of 34 bids for 5Y bonds for UAH 1.6bln with
a weighted average interest rate of 12.59% (vs. 12.52% for these bonds a week
ago). In addition, UAH 1.5 bln came from the sale of 2Y bonds to 22 out of 23
bids with a weighted average interest rate of 12.00% (vs. 12.05% for these
bonds last week).
MinFin satisfied all bids for 3Y and 18M UAH at the
same rate as a week ago. In particular, 13 participants bought 3Y bonds for UAH
702 mln at 12.30% and six bidders purchased 18M bonds for UAH 61 mln at 11.30%.
MinFin satisfied all 23 bids for EUR denominated bonds
for EUR 60.7 mln at 2.50%.
Evgeniya Akhtyrko: MinFin has failed to repeat the impressive result of the auction a week ago.
The demand for local Eurobonds was relatively low, and they didn’t help much
for getting a more decent auction result.
During the recent weeks, there have been signs of
increased interest by non-resident investors in Ukraine’s local bond market.
Since the beginning of May, the volume of Ukrainian local bonds in
non-residents’ portfolios has increased by almost UAH 10 bln. This is a good
development, but this inflow shouldn’t be viewed as a steady and reliable
source of inflow at the market since international investors might lose their
interest in Ukrainian market very quickly.
Next week, MinFin plans to offer five types of UAH
denominated bonds with maturities ranging from six months to three years. The
auction results in the next week are likely to depend on the interest of non-resident
investors in UAH bonds.
