MinFin raises UAH 9 bln at local bond auction, rates decline
17 February 2021
Ukraine’s Finance Ministry raised UAH 5.9 bln, EUR 70
mln and USD 42 mln (the total equivalent of UAH 9.49 bln) at its weekly bond
auction on Feb. 16 after raising UAH 13.1 bln (in the equivalent) at the
auction last week. The auction receipts came from the placement of 3M, 12M,
16M, 2Y and 3Y UAH-denominated bonds, 1Y EUR-denominated bonds and 2Y
USD-denominated bonds.
The largest UAH receipts, or UAH 1.7 bln, came from
the sale of 2Y bonds to all 21 bidders with weighted average interest rate of
11.84% (vs. 11.9% for these bonds last week). MinFin satisfied 21 out of 41
bids for 16M bonds worth UAH 1.5 bln with weighted average rate of 11.3% (vs.
11.74% for these bonds last week). The sale of 3Y bonds to all 22 bidders
brought UAH 1.3 bln. The weighted average interest rate for these bonds
declined to 12.05% from 12.15% last week.
In addition, 44 out of 26 bidders were successful in
purchasing 1Y bonds for UAH 905 mln with weighted average rate of 10.96% (vs.
11.15% for these bonds last week). On top of that, MinFin satisfied 31 out of
36 bids for 3Mbonds for UAH 514 mln with weighted average rate of 9.07% % (vs.
9.29% for these bonds a week ago).
MinFin satisfied all 21 bids for 1Y EUR-denominated
bonds at 2.5%. Two-year USD-denominated bonds were sold to 70 out of 81 bidders
with weighted average rate of 3.89%.
Evgeniya Akhtyrko: Apparently,
MinFin made a sensitivity test for finding out the market demand for
UAH-denominated bonds with lower interest rates. The raised UAH receipts were
fewer than a week ago, but this amount looks quite satisfactory for financing
the ongoing budget deficit.
Meanwhile, the receipts from local Eurobond placement
were not that impressive. The total foreign currency receipts at the two latest
auctions will not be enough to rollover the redemption of USD-denominated bonds
on Feb. 11 for USD 470 mln.
Next week, MinFin plans to offer 6M, 1.5Y, 2Y and 3Y
UAH-denominated bonds. The auction receipts are likely to be around UAH 6-8
bln.
