Local bond placement raises UAH 1.6 bln for Ukraine state budget
18 January 2018
Uraine’s Finance Ministry raised UAH 1.6 bln from the
sale of local bonds at a local auction held on Jan. 16, the ministry reported.
The government offered bonds maturing in three, six, nine and 36 months, with
45% of auction receipts coming from the sale of three-month bonds.
Evgeniya Akhtyrko: No one was
interested in the three- and six-month bonds at interest rates lower than
16.0%. The six-month bonds were sold at 16.0%, compared to 15.75% at the
previous auction on Jan. 10, indicating that market participants are taking
advantage of the government’s willingness to pay higher rates in order to cover
budget gaps.
Meanwhile, the government took three bids for
nine-month bonds at 15.75%, while it rejected four bids ranging between 15.70-16.00%
for the three-year bond as too high. So far this year, the government raised
UAH 2.6 bln from the placement of local bonds, showing much higher results from
last year when January receipts were UAH 1.0 bln.
