Ukraine raises UAH 2.3 bln in local bond placement

Ukraine’s Finance Ministry raised UAH 2.3 bln for the
state budget with a primary local bond placement held on Jan. 23, the ministry
reported. All three types of UAH-denominated bonds drew demand as little more
than half of auction receipts — UAH 1.2 bln — came from the sale of three-month
bonds, UAH 0.9 bln from six-month bonds while the three-year bonds raised only
UAH 0.2 bln.

Evgeniya Akhtyrko: Generous
interest rates and ample amounts of hryvnias in the banking system maintained
strong demand for local bond purchases on the primary market. The receipts of
this week’s auction exceeded the results of previous one (held on Jan. 16) by
UAH 0.7 bln, or 45%. So far this year, the government raised UAH 4.9 bln from
the placement of local bonds, showing much higher results from last year when
January receipts were UAH 1.1 bln.

The weighted-average interest rate for the most
demanded three-month bonds declined to 15.89% from 16.00% at the previous
auction held on Jan. 16, while the interest rate for six-month bonds did not
change and stayed at 16%. Meanwhile, the government so far has not succeeded in
forcing the market to buy three-year bonds at a rate lower than 15.70% and
satisfied five bids at this rate while rejecting one bid at 16.00%.