MinFin local bond auction receipts jump to UAH 12 bln, hikes interest rates

Ukraine’s Finance Ministry raised UAH 6.6 bln and EUR
167 mln (the equivalent of UAH 11.7 bln) at its weekly bond auction on Nov. 9
after raising UAH 6.7 bln at the auction last week. The auction receipts came
from the placement of 3M, 1Y, 1.5Y, 2Y, 3Y, 5Y and 6Y UAH bonds as well as 1Y
EUR denominated bonds.

The largest portion of UAH auction receipts – UAH 2.7
bln – came from the sale of 1Y bonds to 23 out of 24 bidders with a weighted
average interest rate of 11.54% (vs. 11.50% last week). MinFin satisfied 14 out
of 15 bids for 6Y bonds for UAH 2.1 bln with a weighted average interest rate
of 13.23% (vs. 13.10% two weeks ago).

MinFin also received UAH 730 mln from selling 2Y bonds
to 12 out of 20 bidders at 12.70% (vs. 12.47% last week). Nine out of 12
bidders were successful in purchasing 3Y bonds for UAH 571 mln at 12.70%.
MinFin satisfied five out of six bids for 5Y bonds for UAH 266 mln at 12.75%.
All seven bidders were successful in purchasing 3M bonds for UAH 181 mln at
9.50%. The least auction receipts, UAH 45 mln, came from the sale of 1.5 bonds
to six out of seven bidders at 11.57%.

MinFin satisfied all 24 bids for EUR denominated bonds
at 2.50%.

Evgeniya Akhtyrko: The UAH
receipts of the latest auction were close to those of two previous auctions.
However, to achieve this result, MinFin had to hike interest rates for the most
popular bonds.

Next week, MinFin is to offer
six types of UAH denominated bonds with maturity ranging from six months to
five years. We expect auction receipts at UAH 5-7 bln.