MinFin raises UAH 12 bln from local bonds
22 July 2020
Ukraine’s Finance Ministry raised UAH 6.8 bln and USD
171 mln (UAH 11.5 bln in the equivalent) at its weekly bond auction on July 21
after drawing UAH 8.3 bln at the auction last week. The auction receipts came
from the placement of 6M and 20M UAH-denominated bonds and 6M USD bonds.
The 6M UAH-denominated bonds were sold to a sole
bidder for UAH 4.7 bln at 7.74%. In addition, MinFin satisfied the two bids for
20M bonds for UAH 2.1 bln at 10.25% (the same rate for these bonds two weeks
ago).
MinFin satisfied 20 out of 23 bids for 6M
USD-denominated bonds with a weighted average interest rate of 3.39%.
Evgeniya Akhtyrko: A very
limited number of bidders for UAH bonds implies that the UAH auction receipts
were likely generated by state-owned banks, which are always employed by the
government in a weak market. This means the situation at the financial market
remains unfavorable for most players, and the appointment of a new central bank governor
last week didn’t impress them much.
Next week, MinFin is scheduled to place 3M, 1Y, 3Y and
4Y UAH-denominated bonds and 1Y USD-denominated bonds. At the moment, we don’t
expect the number of bidders for UAH bonds to increase.
