MinFin raises UAH 8 bln at the local bond auction

Ukraine’s Finance Ministry raised UAH 8.2 bln at its
weekly bond auction on Nov. 16 after raising UAH 6.6 bln and EUR 167 at the auction
last week. The auction receipts came from the placement of 6M, 1Y, 1.5Y, 2Y,
3Y, 5Y and 6Y UAH bonds. The bonds’ interest rates didn’t change.

Half of the auction receipts – UAH 4.1 bln – came from
the sale of 1Y bonds to 21 bidders at 11.55%. The sale of 6M bonds to nine out
of ten bidders at 10.50% brought UAH 2.5 bln. MinFin satisfied ten out of 14
bids for 6Y bonds for UAH 713 mln at 13.25%.

MinFin satisfied all bids for the rest of the bonds.
In particular, 12 bidders bought 3Y bonds for UAH 660 mln at 12.70%. In
addition, 13 bidders paid UAH 84 mln for 2Y bonds at 12.47%. Five participants
bought 5Y bonds for UAH 63 mln at 12.75%. The least receipts, at UAH 43 mln,
came from the sale of 1.5Y bonds to five bidders at 11.57%.

Evgeniya Akhtyrko: It looks
like the hike of the interest rate last week helped to maintain the demand for
local bonds at a decent level. However, the market now is skewed to the bonds
with terms of maturity of one year and less.

Next week, MinFin is to offer five types of UAH
denominated bonds with maturity ranging from three months to five years. We
expect the auction results to be similar to the latest ones.