Ukraine raises UAH 4.7 bln from local bond sale, accepting all bids

Ukraine’s Finance Ministry raised UAH 1.1 bln and USD
136.2 mln (a total of UAH 4.7 bln in the equivalent) at its weekly bond auction
on Feb. 26 after raising the equivalent of UAH 3.5 bln at the auction last week. The
government satisfied all bids both for UAH- and USD-denominated bonds.

The USD auction receipts more than tripled from USD
40.2 mln raised last week. Around a half of USD auction receipts – USD 72.2 mln
– came from the sale of four-month bonds. They were bought by four bidders at
6.50%. In addition, seven bidders bought 5M bonds for USD 18.5 mln at 6.70%,
eight bidders bought 9M bonds for USD 35.0 mln at 7.25%, 15 bidders bought 1Y
bonds for USD 2.6 mln at 7.25%, nine bidders bought 18M bonds for USD 3.7 mln
at 7.25%, and 17 bidders bought 2Y bonds for USD 4.2 mln at 7.50%.

Three-quarters of auction UAH receipts came from the
sale of bonds with the shortest term of maturity. In particular, 16 bidders
bought 4M bonds for UAH 640.0 mln at 19.00%, and eight bidders bought 6M bonds
for UAH 165.5 mln at 19.00%. In addition, the government satisfied four bids
for 1Y bonds for UAH 2.3 mln at 18.5% and four bids for 2Y bonds for UAH 248.9
mln at 18.0%.

Evgeniya Akhtyrko: It looks like the government made an effort to raise more U.S. dollars
in order to redeem local Eurobonds for USD 457.5 bln on Feb. 27. At with
previous actions, the most revenue was drawn from the placement of bonds with
the shortest term of maturity.