Ukraine raises UAH 6 bln from local bonds

Ukraine’s Finance Ministry raised UAH 6.3 bln at its
weekly bond auction on Jan. 21 after drawing UAH 6.0 bln at the auction
last week. The auction receipts came from the placement of 6M,
14M and 3Y bonds.

Around two-thirds of auction receipts – UAH 4.1 bln –
came from the sale of 3Y bonds to 21 out of 28 bidders with a weighted average
interest rate of 10.01% (vs. 12.38% for the same bonds on Dec. 3). The sale of
14M bonds to 13 out of 29 bidders brought UAH 1.7 bln with weighted average
interest of 10.04% (vs. 10.18% for the same bonds last week).

In addition, MinFin satisfied 6 out of 28 bids for the
purchase of 6M bonds for UAH 512 mln with a weighted average interest rate of
10.03%.

Evgeniya Akhtyrko: The
interest rates for short-term bonds declined significantly amid the growing
demand. The interest rates converged at around 10%, no matter the bonds’ term
of maturity. The yield curve for Ukrainian local bonds, which was clearly
inverted previously, is closer to normal now.

Next week, the government will lengthen the
maturity of the Ukrainian state bonds spectrum by offering 7Y bonds.