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.