Ukraine raises UAH 10.1 bln from local bond auction

Ukraine’s Finance Ministry raised UAH 6.8 bln and USD
122 mln (a total of UAH 10.1 bln in the equivalent) at its weekly bond auction
on Apr. 2 after raising UAH 5.4 bln at the auction last week.
The government placed four types of UAH-denominated bonds with terms of
maturity ranging from four to 18 months, as well as 4M and 1Y USD-denominated
bonds.

The government satisfied all bids for UAH-denominated
bonds. Around half of all UAH receipts – UAH 3.2 bln – came from the sale of
the 4M bond to 36 bidders at 19.5%. In addition, eight bidders bought 1Y bonds
for UAH 2.1 bln at 18.50%, 16 bidders bought 6M bonds for UAH 1.1 bln at 19.0%,
and eight bidders purchased 18M bonds for UAH 0.3 bln at 18.25%.

The lion’s share of USD auction receipts – USD 121 mln
– came from the sale of 3M bonds to 11 bidders at 6.50%. The rest of USD
receipts of USD 1.0 mln came from the sale of 1Y bonds to ten out of 11 bidders
at 7.25%.

Evgeniya Akhtyrko: The action
bidders switched their interest back to bonds with a lower term of maturity. We
need to see the results of a few more auctions in order to understand whether
or not the bidders now prefer to abstain from accumulating too many bonds with
longer maturity, which is likely to be related to increased uncertainty related
to the presidential elections.