MinFin raises UAH 5 bln at the local bond auction
3 February 2021
Ukraine’s Finance Ministry raised UAH 5.3 bln at its
weekly bond auction on Feb. 2 after raising UAH 7.5 bln at the auction last
week. The auction receipts came from the placement of 3M, 1Y, 2Y and 3Y bonds.
Around 40% of auction receipts – 2.1 bln – came from
the sale of 2Y bonds to 31 out of 33 bidders at a weighted average interest
rate of 11.88% (vs. 11.81% for comparable bonds last week). MinFin satisfied
all 12 bids for 3Y bonds for UAH 2.0 bln with a weighted average interest rate
of 12.15%.
In addition, MinFin satisfied 31 out of 60 bids for 1Y
bonds for UAH 298 bln with a weighted average interest rate of 11.40%. The rest
of auction receipts – UAH 250 mln – came from the sale of 3M bonds to 17 out of
25 bidders with a weighted average interest rate of 9.29%.
Evgeniya Akhtyrko: There were
no major changes in bonds interest rates at the latest auction. The government
seems to have moderated its appetite for new borrowing while budget collections demonstrate an amazing surge.
Next week,
MinFin plans to offer five types of UAH-denominated bonds with maturity ranging
from six months to six years as well as 1.2Y USD-denominated bonds. The auction
receipts might increase as the offer of local Eurobonds usually draws
additional demand.
