MinFin bond auction receipts drop to UAH 2.5 bln

Ukraine’s Finance Ministry raised UAH 2.5 bln at its
weekly bond auction on Oct. 5 after raising UAH 7.0 bln at the auction last
week. The auction receipts came from the placement of 6M, 1Y, 1.5Y, 2Y, 3Y and
5Y bonds.

The auction receipts were mostly generated by the sale
of 1Y, 1.5Y and 2Y bonds. In particular, MinFin satisfied all 22 bids for 1Y
bonds for UAH 735 mln at 11.50% (the same rate as a week ago). All ten bidders
were successful in purchasing 14M bonds for UAH 692 mln with a weighted average
rate of 11.57% (vs. 11.58% last week). In addition, MinFin satisfied 21 out of
23 bids for 2Y bids for UAH 651 mln at 12.40% (vs. 12.39% a week ago).

Six out of nine bidders were successful in purchasing
5Y bonds for UAH 310 mln with a weighted average rate of 12.75%. MinFin
received UAH 58 mln from the sale of 6M bonds to six out of eight bidders at
9.70%. The least auction receipts, UAH 19 mln, came from the sale of 3Y bonds
to all six bidders at 12.49%.

Evgeniya Akhtyrko: Now we see that the increase in auction receipts last week was just a one-time spike. The quite significant
hike of interest rates didn’t result in consistently higher auction receipts.
The government receipts from placing new local debt are likely to stay low
unless nonresident investors renew their interest in this market.