MinFin local bond auction receipts drop to UAH 6 bln

Ukraine’s Finance Ministry raised UAH 6.45 bln at its
weekly bond auction on March 23 after raising UAH 14.3 bln (in the equivalent)
at the auction last week. The auction receipts came from the placement of 6M,
12M, 20M, 2Y, and 3Y bonds.

Almost three quarters of the auction receipts – UAH
4.7 bln – came from the sale of 1Y bonds to 40 out of 42 bidders with a
weighted average interest rate of 10.75% (vs. 10.74% for these bonds a week
ago). MinFin satisfied 12 out of 13 bids for 20M bonds for UAH 1.1 bln at 11.1%
(vs. 11.08% for comparable bonds last week).

The weighted average interest rate for 6M bonds dropped
to 8.59% from 9.03% for these bonds two weeks ago. These bonds were sold to 16
out 24 bidders for UAH 554 mln.

MinFin also satisfied all 11 bids for 2Y bonds for UAH
48 mln at 11.7% (vs. 11.8% for these bonds last week) and all seven bids for 3Y
bonds for UAH 32 mln at 12.05% (the same interest rate as a week ago).

Evgeniya Akhtyrko: The auction
receipts dropped amid lowered demand for 2Y and 3Y bonds. If this trend
continues, we are likely to see the growth of interest rates for bonds maturing
in less than two years.

Next week, MinFin plans to offer 3M, 1Y, 1.5Y, 2Y
and 3Y bonds UAH-denominated bonds as well as 1Y and 2Y USD-denominated bonds.
The auction receipts are likely to bring UAH 9-11 bln.