MinFin raises UAH 10 bln from local bonds
12 August 2020
Ukraine’s Finance Ministry raised UAH 4.9 bln and USD
190 mln (UAH 10.1 bln equivalent total) at its weekly bond auction on Aug. 11
after drawing UAH 10.2 bln at the auction last week.
The auction receipts came from the placement of 4M, 2.5Y UAH-denominated bonds
and 18M USD-denominated bonds.
Almost all UAH auction receipts came from the sale of
4M bonds to one of two bidders at 7.0% (vs. 7.1% for these bonds two weeks
ago). In addition, MinFin satisfied two of four bids for 2.5Y bonds for UAH 2.7
mln at 10.0% (vs. 10.25% for 2Y bonds last week).
The USD-denominated bonds were sold to 26 of 27
bidders at 3.6%.
Evgeniya Akhtyrko: The
increase in demand for long-term UAH-denominated bonds observed a week ago is
not the case any more. That very limited circle of current buyers of
UAH-denominated debt (which are likely to be state-owned banks) prefer to focus
on less risky short-term bonds. And this means that there is no improvement in
the sentiments of the broader circle of market players regarding the risk level
of UAH debt at the moment.
Next week, MinFin is scheduled to place 6M, 1Y and
2Y UAH-denominated bonds and 8M USD-denominated bonds. The results of the next
auction are likely to be similar to the latest one.
