7 October 2011
The first USD-indexed government bonds, sold on Tuesday at an auction by the Finance Ministry, were bought by banks with foreign capital, the National Bank of Ukraine’s First Deputy Head Yuriy Kolobov said yesterday (via Interfax). Undisclosed sources interviewed by Interfax said UniCredit Bank Ukraine (formerly Ukrsotsbank) and Citibank Ukraine were among the buyers. On October 4, at the first primary auction for USD-indexed government bonds, the Finance Ministry offered 3Y, 5Y and 10Y papers. Total market demand amounted to UAH 940.0 mln. The Finance Ministry accepted 91% of bids with an average yield of 8.22% for 3Y bonds and 8.75% for 5Y papers. The new bond instruments are linked to the UAH/USD exchange rate and provide some hedge against UAH currency risk. Late yesterday the Finance Ministry announced plans to hold an unplanned auction of USD-indexed government bonds with 5Y and 10Y maturities later today, October 7.