MinFin raises UAH 7 bln at the local bond auction

Ukraine’s Finance Ministry raised UAH 6.7 bln at its weekly
bond auction on Nov. 2 after raising UAH 6.8 bln and USD 395 mln (the
equivalent of UAH 17.2 bln) at the auction last week. The auction receipts came
from the placement of 6M, 1Y, 1.5Y, 2Y, 3Y and 5Y local currency bonds.

The largest portion of auction receipts – UAH 2.8 bln
– came from the sale of 6M bonds to 11 bidders at 10.50%. MinFin satisfied ten
out of 12 bids for 3Y bonds for UAH 2.4 bln with a weighted average interest
rate of 12.70% (vs. 12.56% for comparable bonds last week). In addition, 14 out
of 18 bidders were successful in purchasing 2Y bonds for UAH 843 mln at 12.47%
(vs. 12.46% last week).

MinFin received UAH 419 mln from selling 1Y bonds to
15 out of 17 bidders at 11.50%. Seven out of ten bidders were successful in
purchasing 5Y bonds for UAH 144 mln at 12.75% (the same interest rate as a
month ago). The least auction receipts, at UAH 102 mln, were brought by 12
buyers of 1.5Y bonds at 11.57% (the same rate as a week ago).

Evgeniya Akhtyrko: The receipts
of the latest auction were close to the UAH receipts from the auction of a week
ago. MinFin significantly hiked the interest rate for 3Y bonds, and this helped
to bring more receipts from their sale.

Next week, MinFin is to offer six types of UAH denominated
bonds with maturity ranging from three months to five years, as well as 1Y EUR
denominated bonds. The offer of local Eurobonds is likely to push the total
auction receipts up, but UAH auction receipts are likely to stay around UAH 4-6
bln.