Finance Ministry Plans to Offer Local Bonds August 13

The Ukrainian Finance Ministry will conduct its next local bond auction on August 13, offering investors issues with tenors of four, seven and ten-years. Since the Finance Ministry renewed local bond auctions on June 25, it has raised a total of USD 424 mln (of the USD 752 budget target for 2007). Oleksandr Klymchuk: High demand for local bonds and the lack of quality securities still felt on the market, but we expect the upcoming auction to fail for third time in a row; as the Finance Ministry will most likely demand low yields again (4y: 6%; 7y: 5.4%; 10y: 5.1%).