MinFin raises UAH 2.1 bln at the local bond auction
20 October 2021
Ukraine’s Finance Ministry raised UAH 1.2 bln and USD
37 mln (the equivalent of UAH 2.1 bln) at its weekly bond auction on Oct. 19
after raising UAH 0.5 bln at the auction a week earlier. The auction receipts
came from the placement of 1Y and 2Y UAH denominated bonds, as well as 2Y USD
bonds.
Half of all auction receipts – UAH 1.1 bln – came from
the sale of 1Y bonds to all 12 bidders at 11.50% (the same rate as a week ago).
In addition, MinFin satisfied ten out of 13 bids for 2Y bonds for UAH 105 mln
at 12.40% (the same rate as a week ago).
USD denominated bonds were sold to all 30 bidders at
3.90% (stable rate for 2Y bonds since March).
Evgeniya Akhtyrko: This is
another unexciting local bond auction, which shows neither increased demand for
local debt nor moves in interest rates. One- and two-year bonds remain the most
popular.
Next week, MinFin is to offer six types of UAH
bonds with maturity ranging from three months to six years, as well as one-year
USD bonds. The placement of local Eurobonds next week might bring a significant
chunk of all auction receipts as market participants are likely to roll over
the receipts from the redemption of dollar bonds on Oct. 21 for USD 661 mln.
