MinFin raises UAH 5 bln at local bond auction

Ukraine’s Finance Ministry raised UAH 5.2 bln its
weekly bond auction on March 9 after raising UAH 11.5 bln (in the equivalent)
at the auction last week. The auction receipts came from the placement of 6M,
12M, 20M, 2Y and 3Y bonds.

The largest UAH receipts – UAH 1.9 bln – came from the
sale of 20M bonds to 23 out of 31 bidders with weighted average interest rate
of 10.96%. MinFin satisfied 18 out of 21 bids for 1Y bonds for UAH 1.3 bln with
the weighted average rate of 10.62% (vs. 10.67% for these bonds last week). The
sale of 12Y bonds to 20 out at 11.8% (the same rate as the last week) of 22
bidders brought UAH 1.2 bln.

The weighted interest rate for 6M bonds declined to
9.03% from 9.20% for comparable bonds two weeks ago. The sale of these bonds to
22 out of 23 bidders brought UAH 551 mln. MinFin satisfied all 10 bids for 3Y
bonds for UAH 256 mln at 12.05% (the same rate as a week ago).

Evgeniya Akhtyrko: It looks
like the MinFin pursues the goal to shift the demand to long-term bonds while
keeping the interest rates for 2Y and 3Y bonds relatively high and pushing down
interest rates for bonds with lower maturity. The receipts of the latest
auction were lower than UAH receipts of previous auctions, but the result looks
quite satisfactory for the moment.

Next week, MinFin plans to offer 3M, 1Y, 1.5Y, 2Y, 3Y
and 6Y UAH-denominated bonds as well as 1Y USD-denominated bonds. The auction
receipts are likely to bring UAH 10-12 bln (in the equivalent).