MinFin places local Eurobonds for USD 305 mln

The Ukrainian Finance Ministry sold 9M, 1Y and 2Y
USD-denominated local Eurobonds for USD 305 mln at its weekly bond auction held
on June 19. MinFin also placed 3M, 6M and 10M UAH-denominated bonds at a total
amount of UAH 1.5 bln, bringing total auction receipts to UAH 9.5 bln (in the
equivalent).

Nine-month USD-denominated bonds, which were in
highest demand, brought in USD 162 mln. The government satisfied seven out of
ten bids at a weighted average interest rate of 5.20%. All 13 bids for 2Y
Eurobonds were satisfied at a weighted average interest rate of 5.65%, while
seven out of nine bidders were successful in buying 1Y Eurobonds at 5.40%. The
receipts from 1Y and 2Y bonds were USD 60 mln and USD 83 mln, respectively.

The interest rates for placed UAH-denominated bonds
slid. Three-month bonds were placed at 17.41% (vs. 17.44% a week ago), 6M bonds
– at 17.20% (vs. 17.20% a week ago), and 10M bonds – at 17.29% (vs. 17.30% a
week ago). The highest UAH receipts were from 6M bonds at UAH 955 mln, while 3M
and 10M bonds brought in UAH 130 mln and UAH 371 mln, respectively.

Evgeniya Akhtyrko: The demand for FCY-denominated local bonds remains strong, and the
auction receipts were exactly in line with our prediction. No more local Eurobond placements are scheduled
for the rest of June, but it is quite possible MinFin will change its initial
plans and will sell Eurobonds next week given the high demand of market
participants and the need to keep the country’s gross international reserves at
an acceptable level.