MinFin local bond auction receipts drop to UAH 1.4 bln

Ukraine’s Finance Ministry raised UAH 1.4 bln at its
weekly bond auction on May 11 after raising UAH 10.4 bln (in the equivalent) at
the auction on April 27. The auction receipts came from the placement of 6M,
15M, and 3Y UAH bonds.

Six out of eight bidders were successful in purchasing
6M bonds for UAH 480 mln at 9.0% (the same rate as for comparable bonds two
weeks ago). MinFin satisfied all 23 bids for 15M bonds for UAH 496 mln at 11.2%
as well as all 19 bids for 3Y bonds for UAH 451 mln at 12.30% (vs. 12.38% for
these bonds two weeks ago).

Evgeniya Akhtyrko: We need to
see the results of the auction next week in order to conclude whether or not
this plunge in auction receipts is just a result of the slow return of auction
participants after a large number of non-working days in the beginning of May.

Next week, MinFin is to offer five types of UAH
denominated bonds with maturity ranging from three months to three years, 2Y
USD denominated bonds and 1Y EUR denominated bonds. We don’t expect to see
significant changes in the bonds’ interest rates.