Ukraine raises UAH 8.2 bln from local bond auction

Ukraine’s Finance Ministry raised UAH 7.7 bln, USD
13.5 mln and EUR 2.6 mln (a total of UAH 8.2 bln in the equivalent) at its weekly
bond auction on Apr. 9 after raising UAH 10.1 bln
(in the equivalent) at the auction last week. The government placed four types
of UAH-denominated bonds with terms of maturity ranging from four months to two
years, 12M and 16M USD-denominated bonds, as well as 8M EUR-denominated bonds.

Around half of all UAH receipts – UAH 4.3 bln – came
from the sale of the 4M bond to 37 out of 38 bidders at 19.5%. The second
highest demand was for 2Y bonds, which were sold to eight out of nine bidders
for UAH 1.9 bln at 18.0%. In addition, nine bidders bought 1Y bonds for UAH 0.9
bln with a weighted average interest rate of 18.48%, and 16 bidders purchased
6M bonds for UAH 0.6 bln with a weighted average interest rate of 18.99%.

The government satisfied all bids for bonds
denominated in foreign currency. Eight bidders bought 1Y USD-denominated bonds
for USD 9.4 mln and 14 bidders acquired 16M bonds for USD 4.1 mln, both at
7.25%. EUR-denominated bonds were sold to ten bidders at 4.6%.

Evgeniya Akhtyrko:  Like
at the previous auction, the participants were more interested in bonds with
lower terms of maturity. The interest for 2Y UAH-denominated bonds has not been
lost, but it looks like buyers are preferring to abstain from accumulating too
many bonds with longer maturity, as the uncertainty related to the presidential
elections is rising.

The demand for local bonds denominated in foreign
currency was relatively low. And this is a negative development given the
government’s high need for foreign currency related to the redemption of local
Eurobonds in April (USD 613 mln and EUR 70 mln).