MinFin raises UAH 7.0 bln at local bond auction, hikes rates again

Ukraine’s Finance Ministry raised UAH 7.0 bln at its
weekly bond auction on Sept. 28 after raising UAH 2.7 bln and USD 87 mln at the
auction last week. The auction receipts came from the placement of 1Y, 1.5Y,
2Y, 3Y and 6Y bonds.

Around one-third of auction receipts – UAH 2.5 bln –
came from the sale of 6Y bonds to 15 bidders with a weighted average interest
rate of 13.01% (vs. 12.75% for these bonds a month ago). The second largest
volume, UAH 1.5 bln, came from the sale of 2Y bonds to 23 out of 24 bidders
with a weighted average interest rate of 12.39% (vs. 12.34% a week ago and
12.09% two weeks ago). In addition, MinFin satisfied ten out of 12 bids for 3Y
bonds for UAH 1.2 bln with a weighted average rate of 12.47% (vs. 12.49% a week
ago and 12.30% two weeks ago).

MinFin satisfied all 27 bids for 1Y bonds and all 15
bids for 14M bonds. The sale of 1Y bonds with a weighted average interest rate
of 11.50% (vs. 11.49% last week) brought UAH 928 mln. The rest of the auction
receipts of UAH 834 mln came from the sale of 14M bonds with a weighted average
interest rate of 11.58% (11.47% last week).

Evgeniya Akhtyrko: The UAH auction receipts increased significantly from previous
auctions, but the hike of interest rates for most bonds was tangible as well.
It will be interesting to see if the market maintains its demand for new UAH
debt sales at these interest rates.