MinFin bond auction receipts drop to UAH 0.8 bln

Ukraine’s Finance Ministry raised UAH 0.8 bln at its
weekly bond auction on Aug. 17 after raising UAH 2.7 bln at the auction a week
ago. The auction receipts came from the placement of 1Y, 1.5Y, and 3Y bonds.
Bond interest rates either didn’t change or underwent insignificant changes
from the previous auctions.

Around two-thirds of all auction receipts – UAH 553
mln – came from the sale of 1Y bonds to 29 out of 30 bids with a weighted
average interest rate of 11.14%. MinFin satisfied all 14 bids for 3Y bonds for
UAH 187 bln at 12.30%. The rest of the receipts – UAH 49 mln – came from the
sale of 18M bonds to six bidders at 11.30%.

Evgeniya Akhtyrko: Local bond
auction receipts dropped to the bottom. One-year bonds remained in the highest
demand among the scarce buyers. In the absence of non-resident investors the
demand for long-term bonds is gone.

The next local bond auction is scheduled for Aug. 31.
The MinFin is to offer five types of UAH denominated bonds with terms of
maturity ranging from one to six years as well as two-year USD denominated
bonds. The auction receipts are likely to jump, as the offer of local Eurobonds
usually revives the market.