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Concorde Capital Research: Ukraine places local bonds for USD 1 bln and UAH 7 bln at decreased rates

July 17, 2019 | Cbonds

Ukraine’s Finance Ministry received record-high receipts of UAH 33.3 bln (equivalent) from placing UAH and USD-denominated bonds on July 16. MinFin raised UAH 7.4 bln by placing four types of UAH-denominated bonds with maturities ranging from three months to two years and USD 1.0 bln placing 1Y and 2Y USD-denominated bonds.

The highest auction receipts – USD 632 mln – came from the sale of 1Y USD-denominated bonds to 62 out of 67 bidders. The interest rate for 1Y USD-denominated bonds went down to 6.5% from 7.0% three weeks ago. The rest of the USD auction receipts came from the sale of 2Y bonds to 53 out of 59 bidders with a weighed average interest rate of 7.0% (vs. 7.5% three weeks ago).

Around three quarters of the UAH auction receipts – UAH 5.5 bln – came from the sale of 2Y bonds to 31 out of 36 bidders with a weighted average interest rate of 17.70% (vs. 17.95% two weeks ago). In addition, MinFin satisfied 41 out of 52 bids for 1Y bonds for UAH 1.0 bln with a weighted average interest rate of 17.68% (vs. 17.99% a week ago). The rest of the auction receipts came from the sale of 3M and 7M bonds. The government satisfied 14 out of 18 bids for 3M bonds raising UAH 0.5 bln with a weighted average interest rate of 16.96%. The other UAH 0.5 bln came from the sale of 7M bonds to 18 out of 22 bidders with a weighted average interest rate of 17.21% (vs. 17.47% last week).

Evgeniya Akhtyrko: The interest rates on the Ukrainian local bond market continue their downward trend, indicating declining risk and increasing investor confidence. The market urge for the National Bank of Ukraine to lower the key policy rate from its current 17.5% increased even more.

The record-high demand for local Eurobonds was a surprise, given the significant decline in interest rates. The most likely reason is that the bond holders decided to rollover the receipts from local Eurobonds redeemed in July (USD 508 mln on July 10 and USD 276 mln on July 18).

Issue: Ukraine, 204457 USD 09jul2020

StatusCountry of riskMaturity (option)AmountIssue ratings (M/S&P/F)
outstandingUkraine07/09/2020671,623,000 USD-/-/-

Company: Ukraine

Full company nameUkraine
Country of riskUkraine

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