Ukraine MinFin raises UAH 8 bln at the local bond auction
Ukraine’s Finance Ministry raised UAH 7.5 bln and EUR 8 mln (the total equivalent of UAH 7.8 bln) at its weekly bond auction on July 20 after raising UAH 8.1 bln and USD 65 mln at the auction a week ago. The auction receipts came from the placement of 1Y, 1.5Y, 2Y, 3Y and 5Y UAH denominated bonds as well as 1Y EUR denominated bonds. The government satisfied all bids for UAH bonds. The interest rates remained unchanged compared to recent auctions.
Practically all UAH auction receipts came from the sale of 1Y and 2Y bonds. In particular, 11 bidders bought 2Y bonds for UAH 5.4 bln at 12.09%. One-year bonds were sold to 28 bidders for UAH 1.9 bln at 10.99%.
Nine bidders bought 18M bonds for UAH 144 mln at 11.30%. The sale of 3Y bonds to nine bidders at 12.30% brought UAH 18 mln. The fewest receipts, at UAH 17 mln, came from the sale of 5Y bonds to five bidders at 12.59%.
MinFin satisfied 17 bids for 1Y EUR denominated bonds at 2.50% leaving out one bid at 2.70%.
Evgeniya Akhtyrko: Weak demand for EUR denominated bonds resulted in lower auction receipts this week. As for the UAH denominated bond realm, we have mostly déjà vu results of the previous week both in terms of demand distribution and interest rates. The weak sales of 3Y and 5Y bonds imply that nonresident investors are still in recess.
Next week, MinFin plans to offer six types of UAH denominated bonds with maturity ranging from three months to five years, as well as one-year USD denominated bonds. We expect the auction receipts at the equivalent of UAH 8-10 bln.