Ukraine raises UAH 18.4 bln from local bond sale
30 January 2019
Ukraine’s Finance Ministry raised UAH 9.0 bln, USD
330.7 mln, and EUR 5.6 mln (a total of UAH 18.4 bln in the equivalent) at its weekly
bond auction on Jan. 29 after raising the equivalent of UAH 13.6 bln at the auction last week.
As in the previous January auctions, the government satisfied all bids for
local Eurobonds.
Receipts from the placement of USD-denominated bonds
tripled from the previous auction. Meanwhile, 86% of USD receipts – USD
285.6 mln – came from the sale of bonds maturing on Feb. 21, which were sold to
ten bidders at 6.25%. Six bidders bought 3M bonds for USD 37.6 mln at 6.5%, one
bidder bought 5M bonds for USD 0.5 mln at 6.7% and 12 bidders bought 9M bonds
for USD 7.0 mln at 7.25%. The government also satisfied four bids for 3M
euro-denominated bonds for EUR 5.6 mln at 4.5%.
Most of the UAH receipts came from the sale of 3M
bonds to 19 out of 20 bidders for UAH 3.7 bln at a weighted average interest
rate of 19.50%. MinFin satisfied all 15 bids for 6M bonds with a weighted
average interest rate of 18.98%, raising UAH 2.0 bln; all seven bids for 10M
bonds at 18.5%, raising UAH 1.3 bln; and all nine bids for 1Y bonds at 18.47%,
raising UAH 0.2 bln. The government declined one bid for 6M bonds at 19.5%, but
satisfied the remaining nine bids at a weighted average interest rate of 18.96%,
raising UAH 1.6 bln. MinFin satisfied none of eight bids ranging from 17.0% to
18.0% for its 5Y bonds.
Evgeniya Akhtyrko: The
government’s foreign currency needs apparently exceed the market capacity to
supply it through local Eurobond purchases. MinFin has been experiencing a
shortage in foreign currency to cover the redemption of local Eurobonds
maturing on Jan. 16 (USD 423.7 mln) and Jan. 30 (USD 354.0 mln). Meanwhile, the
receipts from the sale of local Eurobonds in January have amounted to USD 582.8
mln and EUR 33.3 mln.
Next month, the government’s foreign currency needs
will be high again. On Feb. 21, it is scheduled to repay USD 286.6 mln for
bonds placed on Jan. 29. In addition, it will need to redeem 1Y local Eurobonds
for USD 457.5 mln on Feb. 27.
