MinFin local bond auction receipts jump to UAH 14 bln

Ukraine’s Finance Ministry raised UAH 4.4 bln, USD 63
mln and EUR 238 mln (the total equivalent of UAH 14.2 bln) at its weekly bond
auction on May 18 after raising UAH 1.4 bln at the auction on May 11. The
auction receipts came from the placement of 3M, 15M, 18M, and 2Y UAH
denominated bonds, 2Y USD denominated bonds and 1Y EUR denominated bonds.

MinFin satisfied all bids for local Eurobonds.
One-year EUR denominated bonds, which brought more than half of all auction
receipts, were sold to 30 bidders at 2.5%. In addition, 42 bidders brought 2Y
USD denominated bonds at 3.9%.

The highest UAH auction receipts – UAH 2.0 bln – came
from the sale of 15M bonds to all 32 bidders with a weighted average interest
rate of 11.19% (vs. 11.20% for these bonds a week ago). All 23 bidders were
successful in purchasing 2Y bonds for UAH 1.6 bln with a weighted average rate
of 12.02% (vs. 11.96% for these bonds two weeks ago). MinFin satisfied six out
of 11 bids for 3M bonds at 8.48%. The rest of UAH receipts – UAH 248 mln – came
from the sale of 18M bonds to all nine bidders at 11.30%.

Evgeniya Akhtyrko: The success
of the latest auction was likely the result of rollover from the redemption of
EUR denominated local Eurobonds for EUR 428 mln on May 13. Meanwhile, the
demand for UAH denominated bonds is quite moderate despite relatively high
interest rates.

Next week, MinFin is to offer five types of UAH
denominated bonds with maturity ranging from six months to three years. The
auction receipts are not likely to exceed UAH 5 bln.