Ukraine raises UAH 48 mln from local bonds placement

Ukraine’s Finance Ministry raised UAH 48.1 mln from
the sale of 3M and 6M local bonds at its weekly bond auction on Nov. 27. Market
participants placed no bids for 1Y and 2Y bonds, which were also offered for
sale.

Interest rates for bonds didn’t change from the
previous auction. Four bidders bought 3M bonds for UAH 5.4 mln at 19.0% while
two bidders purchased 6M bonds for UAH 42.7 mln at 18.5%.

Evgeniya Akhtyrko: It was not
difficult to predict that the auction receipts would be thin. Firstly, the
government didn’t offer bonds denominated in a foreign currency, which have
generated most of the receipts at recent auctions.
Secondly, the president’s initiative to impose martial law increased
uncertainty, causing market players to refrain from investment.

MinFin plans to offer 1Y and 2Y USD-denominated bonds,
as well as UAH-denominated bonds with maturity ranging from three months to
three years, for sale at the weekly auction next week. Its results will serve
as a solid indicator of investor attitudes to the recent dramatic developments
in Ukraine’s political situation.