MinFin raises UAH 3 bln in 1Y local bonds

Ukraine’s Finance Ministry raised UAH 2.8 bln at its
weekly bond auction on Sept. 1 after raising UAH 0.9 bln (in the
equivalent) at the auction last week. All auction
receipts came from the placement of 1Y bonds which were sold to six out of 11
bidders with a weighted average interest rate of 9.29% (vs. 9.20% for 1Y bonds
three weeks ago).

The MinFin did not satisfy the sole bid for 8M bonds
at 10.0%.

Evgeniya Akhtyrko: The
government apparently faces the need to hike interest rates for local bonds
with maturity under one year, as the current interest rates (around 7.8%) are
too low to find demand at the primary market. This means anxiety among the
market players has not gone down after its spike in the middle of the summer.

Next week, MinFin is scheduled to place 3M, 1Y and 3Y
UAH-denominated bonds.