MinFin raises UAH 1 bln from local bonds

Ukraine’s Finance Ministry raised UAH 1.1 bln at its
weekly bond auction on Aug. 20 after raising UAH 2.0 bln at the auction last week. MinFin
offered 3M, 1Y and 3Y bonds.

The highest auction receipts – UAH 501 mln – came from
the sale of 1Y bonds to nine out of 11 bidders with a weighted average interest
rate of 16.04% (vs. 16.16% for the same bond last week). In addition, MiFin
satisfied all ten bids for 3Y bonds for UAH 489 mln at 16.12% (vs. 16.06% two
weeks ago). The rest of auction receipts equal to UAH 82 mln came from the sale
of 3M bonds to all 11 bidders at 16.49% (the same rate for 3M bonds as two
weeks ago).

Evgeniya Akhtyrko: Ukraine’s
local bond market is struck in an August lull. The changes in interest rates
have not been consistent. MinFin managed to lower the interest rate for the
most asked 1Y bonds but agreed to sell 3Y bonds at a somewhat higher rate than
two weeks ago.

Next week, the government is to offer 6M, 1Y, 2Y and
5Y bonds. We expect the lull to continue, with auction receipts staying at UAH
1-2 bln and no significant changes in interest rates.