MinFin places 3Y bonds for UAH 5.8 bln, lowering rate to 18.5%
28 April 2016
Ukraine’s Finance Ministry reported on April 27 that it attracted UAH 2.76 bln from the placement of local UAH-denominated bonds that day. The paper maturing in April 2019 was placed at a YTM of 18.45%. On April 26, the ministry raised UAH 3.03 bln from the placement of local bonds maturing in January 2019 at 18.44% YTM.
Year-to-date, the ministry raised UAH 9.9 bln and USD 1.6 bln from local bond placements, we estimate.
Alexander Paraschiy: Last week’s reduction of the central bank’s key rate to 19% from 22%, and the related decrease in its two-week CD rate to 19% from 20%, have been already reflected in the costs of MinFin’s new placements. Remarkably, MinFin was able to place the same January 2019 bond on April 12 at a yield of 20.0%, but raised just UAH 0.19 bln.
