Modified offering

Обзор облигаций 26.11.2014 The MoF canceled the 5-year and 7-year local currency and 2-year USD-denominated bonds scheduled for yesterday's auction and instead offered one 2-year local currency bond. It received only one bid for UAH8.57m at the standard 17.60% rate for this maturity, providing the state budget with UAH8.60m. As today's repayments are in US dollars, the MoF should have held this auction earlier to refinance repayments. We anticipate that the MoF could hold an additional primary auction today after the repaid funds are received by investors, which occurred earlier this year when bonds denominated in FX came due. We could also see additional offerings of local currency bonds, as has become routine.