MinFin raises UAH 11 bln from local bonds
29 July 2020
Ukraine’s Finance Ministry raised UAH 7.1 bln and USD
131 mln (UAH 10.7 bln in the equivalent) at its weekly bond auction on July 28
after drawing UAH 6.8 bln and USD 171 mln at the auction last week.
The auction receipts came from the placement of 5M and 1Y UAH-denominated bonds
and 1Y USD bonds.
The 5M UAH-denominated bonds were sold to two bidders
for UAH 4.9 bln at 7.1%. In addition, MinFin satisfied two out of three bids
for 1Y bonds for UAH 2.2 bln at 9.2% (the same rate as two week ago for these
bonds).
MinFin satisfied all 29 bids for 1Y USD-denominated
bonds at 3.5%.
Evgeniya Akhtyrko: By and
large, the results of the latest auction are similar to those a week ago. Only
local Eurobonds found competitive demand, while the UAH-denominated bonds were
likely bought by state-owned banks. This means that the larger financial
community still sees high uncertainty related to the future trend of the
hryvnia exchange rate.
In particular, market players haven’t ruled out that
the National Bank of Ukraine can resort to fostering the hryvnia’s depreciation
in order to please those power brokers who believe that a weaker hryvnia can help economic revival.
Next week, MinFin is scheduled to place 6M, 1Y and 2Y
UAH-denominated bonds. Yet we don’t expect more bidders for UAH bonds to
emerge.
