Ukraine raises record-high $1.3bn via local bond placements

By bne IntelliNews July 18, 2019

Ukraine’s finance ministry received record-high receipts of UAH33.3bn ($1.27bn) from placing UAH and US dollar-denominated bonds on July 16.

Kyiv raised UAH7.4bn by placing four types of UAH-denominated bonds with maturities ranging from three months to two years, and $1bn from placing one- and two-year US dollar-denominated bonds.

The highest auction receipts, $632mn, came from the sale of one-year US dollar-denominated bonds to 62 out of 67 bidders. The interest rate for one-year US dollar-denominated bonds went down to 6.5% from 7.0% three weeks ago. The rest of the US dollar auction receipts came from the sale of two-year bonds to 53 out of 59 bidders with a weighed average interest rate of 7% (vs. 7.5% three weeks ago).

Around three quarters of the UAH auction receipts, UAH5.5bn, came from the sale of two-year bonds to 31 out of 36 bidders with a weighted average interest rate of 17.70% (vs. 17.95% two weeks ago).  In addition, the finance ministry satisfied 41 out of 52 bids for one-year bonds for UAH1bn 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 three- and seven-month bonds. The government satisfied 14 out of 18 bids for three-month bonds, raising UAH0.5bn with a weighted average interest rate of 16.96%. The other UAH0.5bn came from the sale of seven-month bonds to 18 out of 22 bidders with a weighted average interest rate of 17.21% (vs. 17.47% last week), according to Kyiv-based brokerage Concorde Capital.

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