Ukraine raises UAH 2.2 bln from local bonds, cuts 3Y bond rates
9 October 2019
Ukraine’s Finance Ministry raised UAH 2.15 bln at its
weekly bond auction on Oct. 8 after raising UAH 0.08 bln at the auction
last week. MinFin offered 6M, 1Y and 3Y UAH-denominated bonds.
The lion’s share of auction’s receipts, UAH 2.12 bln, came from the sale of 3Y
bonds to 16 out of 20 bidders at a weighted average interest rate of 15.42%
(vs. 15.52% three weeks ago). In addition, seven out of eight bidders were
successful in buying 6M bonds for UAH 27 mln at 15.65%. On top of that, MinFin
satisfied all three bids for 1Y bonds for UAH 8 mln at 15.09% (the same
interest rate as last week).
Evgeniya Akhtyrko: Revenue
from the weekly bond auction has been restored from the drop last week.
Apparently, non-resident investors renewed their interest in mid-term
UAH-denominated debt.
Nevertheless, last week’s demarche of non-residents
demonstrated a high sensitivity of Ukraine’s primary bond market to the
dramatically developing political situation. The spikes in political
uncertainty are likely to adversely affect the willingness of international
investors to buy Ukrainian debt securities next week.
