Taras Kotovych, Fixed-income analyst, Investment Capital Ukraine:
Last Friday, the MoF announced the offering of the standard 5-year and 7-year local currency bonds oriented to “friendly” demand for tomorrow’s scheduled auction.
Investment implications: The bonds being offered are the same as those offered and unsuccessfully placed in the first scheduled auction last week, which resulted in the auction being canceled. This week we expect tosee very similar situation with lack of demand, especially because debt repayments of UAH0.46bn will require nor financing. Moreover, after last week's Naftogaz's financing, the MoF has no special needs; thus, we expect no demand tomorrow or only low friendly demand.