MinFin raises UAH 11 bln at local bond auction, rates decline
3 March 2021
Ukraine’s Finance Ministry raised UAH 6.9 bln and USD 163
mln (the total equivalent of UAH 11.5 bln) at its weekly bond auction on March
2 after raising UAH 10.6 bln (in the equivalent) at the auction last week. The
auction receipts came from the placement of 3M, 12M, 16M, 2Y and 3Y
UAH-denominated bonds and 2Y USD-denominated bonds.
The largest UAH receipts – UAH 2.4 bln – came from the
sale of 2Y bonds to 24 out of 27 bidders at 11.80% (the same rate for these
bonds last week). MinFin satisfied 25 out of 33 bids for 1Y bonds for UAH 1.8
bln with the weighted average rate of 10.67% (vs. 10.80% for these bonds last
week). The sale of 16M bonds to 17 out of 25 bidders brought UAH 1.5 bln. The
weighted average interest rate for these bonds declined to 11.04% from 11.15%
last week.
The interest rate for 3Y bonds has stayed at 12.05%
for three weeks. The sale of these bonds to 18 out of 20 bidders brought UAH
612 mln. The rest of UAH auction receipts for UAH 527 mln came from the sale of
3M bonds to 12 out of 22 bidders with the weighted average interest rate of
8.47% (vs. 9.07% for comparable bonds two weeks ago).
MinFin also satisfied all 14 bids for 2Y
USD-denominated bonds at 3.9%.
Evgeniya Akhtyrko: Over
several weeks, MinFin has been quite successful in raising UAH receipts while
lowering interest rates for short-term and mid-term bonds. Meanwhile, the
government maintains the interest rate for 3Y bonds at a higher level trying to
keep market participants interested in them.
The placement of local Eurobonds was not in the
initial plan of MinFin for this auction. Apparently, the government tries to
secure more foreign currency to rollover the redemption of USD-denominated
bonds on March 31 for USD 325 mln.
Next week, MinFin plans to offer 6M, 1Y, 1.5Y, 2Y
and 3Y UAH-denominated bonds. The auction receipts are likely to bring UAH 6-10
bln.
