MinFin raises UAH 19 bln from local bonds

Ukraine’s Finance Ministry raised UAH 19.4 bln at its
weekly bond auction on May 12 after raising UAH 10.0 bln at the auction last week.
The auction receipts came from the placement of 3M and 6M local currency bonds.
Around two-thirds of auction receipts – UAH 13.1 bln – came from the sale of 3M
bonds to 20 out of 21 bidders with a weighted average interest rate of 11.26%
(the same rate as for 3M bonds a week ago). The bids ranged from 11.0% to
11.5%, while MinFin’s cutoff rate was 11.3%. MinFin satisfied 11 out of 14 bids
for 6M bonds for UAH 6.3 bln at 11.28%. The bids ranged from 11.28% to 11.50%.

Evgeniya Akhtyrko: The
increase in auction receipts is a positive development indicating a revival in
the confidence of market participants. Nevertheless, the relatively high
interest rates and short maturity of the placed bonds show that the risks are
being assessed as high.

MinFin is planning the weekly placement of 3M and
6M bonds through the end of 2Q20. Unless large market disturbances occur,
significant movements in interest rates and the activity of market participants
are not likely to happen.