Ukraine raises UAH 0.02 bln from selling local bonds

Ukraine’s Finance
Ministry raised UAH 21.2 mln at its weekly local bond auction held on Aug. 28
after UAH 2.4 bln (in the equivalent) were raised last week. About half of receipts came from the
sale of 5Y bonds.

The government sold
5Y bonds to three bidders for UAH 10.3 mln at 16.00% while rejecting two bids
at 16.50%. Three auction participants also bought 6M bonds for UAH 3.9 mln at
18.00%. All four bids for 1Y bonds were satisfied at 17.90%, raising UAH 6.9
bln. One bidder bought 3Y bonds for UAH 0.2 mln at 16.80%.

Evgeniya Akhtyrko: The demand for local bonds remains
low during the leisurely end of summer. However, market participants might be
also waiting for the central bank’s decision regarding the key policy rate on
Sept. 6. There is a chance that the National Bank of Ukraine will resort to
another hike of the key policy rate after raising it 0.5pp to 17.5% on July
12. Should it
happen, market participants will be at liberty to ask for higher interest rates
on local bonds.