Ukraine raises UAH 1 bln from selling six-month bonds

Ukraine’s Finance Ministry raised UAH 1.0 bln at its
weekly local bond auction held on July 31 after UAH 5.0 bln were raised last week.
At the auction, where 6M, 1Y and 3Y bonds were offered, the lion’s share came
from the sale of 6M bonds, while the sale of 3Y bonds brought only UAH 12.7
mln.

The six-month bonds were sold to three bidders at an
interest rate of 18.00% – the same as for three-month bonds sold last week. The
government satisfied two out of three bids for 3Y bonds at a weighted average
interest rate of 16.82% (vs. 16.70% two weeks ago).

Evgeniya Akhtyrko: The demand for UAH-denominated local bonds is typically weak during the
slow summer season. High interest rates for local bonds increase the risks both
for holders and the issuer, so budget financing needs are being covered mostly
by 3M and 6M bonds, which offer the shortest terms. We are not likely to see
any significant moves on the primary local bond market through the end of the
summer.