MinFin raises UAH 9 bln at local bond auction
6 January 2021
Ukraine’s Finance Ministry raised UAH 8.7 bln at its
weekly bond auction on Jan. 5 after raising UAH 23.6 bln (in the equivalent) at
the auction last week. The auction receipts came from the placement of 3M, 1Y,
2Y and 3Y bonds.
Around 90% of UAH auction receipts came from the
placement of 3M bonds to 13 bidders for UAH 7.9 bln at 10.0%. MinFin also satisfied
12 bids for 1Y bonds, raising UAH 699 mln with a weighted average interest rate
of 11.67%, leaving out one bid at 11.75%.
In addition, three bidders bought 2Y bonds for UAH 104
mln at 11.85%. The rest of auction receipts – UAH 8 mln – came from the sale of
3Y bonds to three bidders at 12.15%.
Evgeniya Akhtyrko: The drop in
auction receipts after the record-high results of December is not surprising.
Nonetheless, UAH 9 bln in receipts is quite a strong result for a “typical”
auction. The market’s skew towards bonds with the lowest term of maturity
continues to reflect the perception of high risk among bond buyers.
Next week, MinFin plans to offer four types of
UAH-denominated bonds with terms of maturity ranging from six months to three
years, as well as one-year USD-denominated bonds. Auction receipts might
increase as local Eurobonds usually bring some additional inflow.
