Local bond auction receipts jump to UAH 10 bln

Ukraine’s Finance Ministry raised UAH 8.1 bln and USD
65 mln (the total equivalent of UAH 9.9 bln) at its weekly bond auction on July
13 after raising UAH 3.1 bln at the auction a week ago. The auction receipts
came from the placement of 3M, 1Y, 1.5Y, 2Y, 3Y and 5Y UAH denominated bonds as
well as 1Y USD denominated bonds. The interest rates remained unchanged
compared to the recent auctions.

Almost half of UAH auction receipts – UAH 3.7 bln –
came from the sale of 2Y bonds to all 24 bidders at 12.09%. MinFin also
satisfied 21 out of 22 bids for 1Y bonds at 10.99% for UAH 2.1 bln. Six bidders
bought 1.5Y bonds for UAH 1.7 bln at 11.30%.

The sale of 3Y bonds to 12 bidders at 12.30% brought
UAH 451 mln. MinFin satisfied 11 out of 12 bids for 3M bonds at 8.50% for UAH
176 mln. On top of that, seven bidders bought 5Y bonds for UAH 37 mln at
12.59%.

USD denominated bonds were purchased by 61 bidders at
3.70%.

Evgeniya Akhtyrko: The local
bond market revived a bit after the slack of the three previous auctions.
However, both UAH and USD receipts are far from the maximums we have observed
year-to-date. The weak sales of 3Y and 5Y bonds imply that nonresident
investors are not rushing to increase the volume of UAH bonds in their
portfolios.

Next week, MinFin plans to offer six types of UAH
denominated bonds with maturity ranging from six months to five years, as well
as one-year EUR denominated bonds. We expect the auction results to be similar
to the ones of this week.