July 22, 2020 | Cbonds
Ukraine’s Finance Ministry raised UAH 6.8 bln and USD 171 mln (UAH 11.5 bln in the equivalent) at its weekly bond auction on July 21 after drawing UAH 8.3 bln at the auction last week. The auction receipts came from the placement of 6M and 20M UAH-denominated bonds and 6M USD bonds.
The 6M UAH-denominated bonds were sold to a sole bidder for UAH 4.7 bln at 7.74%. In addition, MinFin satisfied the two bids for 20M bonds for UAH 2.1 bln at 10.25% (the same rate for these bonds two weeks ago).
MinFin satisfied 20 out of 23 bids for 6M USD-denominated bonds with a weighted average interest rate of 3.39%.
Evgeniya Akhtyrko: A very limited number of bidders for UAH bonds implies that the UAH auction receipts were likely generated by state-owned banks, which are always employed by the government in a weak market. This means the situation at the financial market remains unfavorable for most players, and the appointment of a new central bank governor last week didn’t impress them much.
Next week, MinFin is scheduled to place 3M, 1Y, 3Y and 4Y UAH-denominated bonds and 1Y USD-denominated bonds. At the moment, we don’t expect the number of bidders for UAH bonds to increase.
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