MinFin raises UAH 16 bln at the local bond auction ahead of UAH 33 bln repayment
2 June 2021
Ukraine’s Finance Ministry raised UAH 6.0 bln, USD 359
mln (UAH 15.9 bln in total equivalent) at its weekly bond auction on June 1
after raising UAH 6.0 bln at the auction a week ago. The auction receipts came
from the placement of 3M, 14M, 18M, 2Y and 3Y UAH denominated bonds as well as
1Y and 2Y USD bonds.
The placement of local Eurobonds brought around 60% of
all auction receipts. In particular, MinFin satisfied 44 out of 45 bids for 1Y
USD bonds for USD 344 mln at 3.70% (the same interest rate as for 1Y USD bonds
two weeks ago). In addition, all 31 bidders were successful in purchasing 2Y
USD bonds for USD 15 mln at 3.90%.
The largest UAH receipts – UAH 2.6 bln – came from the
sale of 14M bonds to 29 out of 30 bidders at 11.20% (the same interest rate as
for comparable bonds a week ago). MinFin satisfied all 15 bids for 3Y bonds for
UAH 1.1 bln at 12.30% (the same interest rate as for these bonds a week ago).
All ten bidders were successful in purchasing 18M
bonds for UAH 988 mln at 11.30% (the same rate as for these bonds as last
week). MinFin satisfied all 16 bids for 2Y bonds for UAH 768 mln with a
weighted average rate of 12.04% (vs. 12.05% for these bonds last week). The
rest of the auction receipts – UAH 524 mln – came from the sale of 3M bonds to
ten out of 11 bidders with a weighted average interest rate of 8.42% (vs. 8.48%
for comparable bonds two weeks ago).
Evgeniya Akhtyrko: Not
surprisingly, local Eurobonds generated additional auction receipts. Meanwhile,
the placement of UAH bonds was almost a reproduction of the previous auction
both in terms of receipts and interest rates.
Notably, the recent placements of new local bonds do practically
nothing for financing government spending because of the growing load of local
bond redemptions. In particular, the government is to redeem UAH 11.3 bln and
USD 806 mln during the current week, or in total UAH 33.4 bln equivalent.
Next week, MinFin plans to offer five types of UAH
denominated bonds with maturity ranging from six months to five years as well
as 1Y USD denominated bonds. The auction receipts are likely to be close to
those of the latest auction.
