MinFin local bond auction receipts jump to UAH 13 bln
10 February 2021
Ukraine’s Finance Ministry raised UAH 7.4 bln and USD
207 mln (the total equivalent of UAH 13.1 bln) at its weekly bond auction on
Feb. 9 after raising UAH 5.3 bln at the auction last week. The auction receipts
came from the placement of 6M, 12M, 16M, 2Y, 3Y and 6Y UAH-denominated bonds as
well as 14M USD-denominated bonds.
More than half of the UAH auction receipts, or 4.0 bln
came from the sale of 16M bonds to 39 out of 40 bidders with weighted average
rate of 11.74% (vs. 11.68% for these bonds two weeks ago). MinFin also
satisfied all but one of 22 bids for 6Y bonds for UAH 1.0 bln with weighted
average rate of 12.5%.
In addition, 34 out of 41 bidders were successful in
purchasing 1Y bonds for UAH 902 mln with weighted average rate of 11.15% (vs.
11.40% for these bonds last week). MinFin satisfied all 11 bids for 3Y bonds
for UAH 538 mln at 12.15% % (the same rate as a week ago).
The sale on 6M bonds to 31 out of 36 bidders with
weighted average interest rate of 9.89% brought UAH 515 mln. On top of that,
all 15 bidders purchased 2Y bonds for UAH 398 mln at 11.9%.
MinFin satisfied 88 out of 90 bids for 14M
USD-denominated bonds with weighted average interest rate of 3.9%.
Evgeniya Akhtyrko: As we expected, the offer
of local Eurobonds moved the auction receipts up. Meanwhile, the interest for
UAH-denominated bonds remains lofty amid relatively high rates. So far, MinFin
is successful in its tactic for shifting the demand of market players to the
bonds with maturity exceeding one year.
Next week, MinFin plans to offer four types of
UAH-denominated bonds with maturity ranging from three months to three years as
well as 1Y EUR-denominated and 2Y USD-denominated bonds. The auction results
are likely to be similar to those of the latest auction.
