MinFin raises UAH 9 bln at local bond auction

Ukraine’s Finance Ministry raised UAH 4.5 bln and USD
156 mln (total equivalent of UAH 8.9 bln) at its weekly bond auction on March
30 after raising UAH 6.5 bln at the auction last week. The auction receipts
came from the placement of 3M, 12M, 20M and 2Y UAH-denominated bonds as well as
1Y and 2Y USD-denominated bonds.

Almost 60% of hryvnia receipts – UAH 2.6 bln – came
from the sale of 1Y bonds to 29 out of 30 bidders with a weighted average
interest rate of 10.74% (vs. 10.75% for these bonds a week ago). MinFin
satisfied 21 out of 23 bids for 2Y bonds for UAH 1.0 bln with a weighted
average rate of 11.80% (vs. 11.70% for these bonds last week).

The interest rate for 3M bonds dropped to 7.98% from
8.33% for these bonds two weeks ago. These bonds were sold to 16 out 18 bidders
for UAH 531 mln. MinFin also satisfied all 13 bids for 20M bonds for UAH 388
mln at 11.10% (the same rate for these bonds last week).

MinFin satisfied all 23 bids for 2Y USD denominated
bonds for USD 107 mln at 3.90% (the same rate for comparable bonds four weeks
ago) as well as all 34 bids for 1Y USD denominated bonds for USD 50 mln at
3.70% (the same rate for these bonds two weeks ago).

Evgeniya Akhtyrko:  The
latest auction didn’t bring any surprises. One-year bonds remain the most
popular among buyers. They have been sold with practically the same interest
rate for the last three weeks. The government continues to push down interest
rates for the bonds maturing in less than one year. And despite that, those
bonds are not in the least demand at the market.

The local Eurobonds were sold to all available bidders
at a “fixed” price which apparently was not a secret for anybody.

The government schedule for local bond placements in
2Q21 is yet to be published. Most likely, next week, MinFin will also offer
dollar bonds to roll over the notes for USD 366 mln maturing on Apr. 8.