UAH1.51bn raised

Обзор облигаций 12.11.2014 After raising significant proceeds last week, the MoF removed the 2-year and 5-year bond offerings from the schedule and offered only the 10-year local currency bond. As usual, this auction received only one bid, most likely supported by the NBU under domestic QE, for UAH1.50bn (par value) at the routine interest rate 15.50%. As the result of this auction, the MoF received UAH1.51bn of proceeds, covering most of the principal repayments scheduled for today, but it will have to use budget revenues to pay the scheduled interest repayments. Of the UAH2.16bn in repayments scheduled today, including UAH1.60bn of principal repayments, there could be an additional auction to cover the remaining UAH0.65bn which could be repaid using budget revenues. As quarterly tax payments will start at the end of next week, this is a highly probable scenario.