Concorde Capital Research: Ukraine raises UAH 3.5 bln from local bond sale, accepting all bids
February 13, 2019
Ukraine’s Finance Ministry raised UAH 2.4 bln and USD 40.2 mln (a total of UAH 3.5 bln in the equivalent) at its weekly bond auction on Feb. 12 after raising the equivalent of UAH 6.7 bln at the auction last week.
The USD auction receipts surged four times from USD 9.9 mln raised last week. However, two-thirds of USD auction receipts – USD 27.8 mln – came from the sale of bonds which will mature in 64 days. They were bought by nine bidders at 6.50%. In addition, ten bidders bought 9M bonds for USD 2.6 mln at 7.20%, nine bidders bought 1Y bonds for USD 4.4 mln at 7.25% and 15 bidders bought 2Y bonds for USD 5.3 mln at 7.50%.
The lion’s share of auction’s UAH receipts – UAH 2.1 bln – came from the sale of 3M bonds to 17 bidders at 19.50%. Six bidders bought 18M bonds for UAH 163.5 mln at 18.25%. In addition, ten bidders bought 6M bonds for UAH 97.2 mln at 19.00%, one bidder bought 10M bonds for UAH 4.4 mln at 18.50%, five bidders bought 1Y bonds for UAH 10.1 mln at 18.50%.
Evgeniya Akhtyrko: The government satisfied the appetite of local bond buyers with its proposed rates, for at least this week. The sale of USD-denominated bonds even increased. However, the foreign currency receipts from the local bond sale this month are not likely to cover the outlays related to February’s redemption of local Eurobonds amounting to USD 744.1 mln.
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