Scheduled primary auction

Обзор облигаций 24.02.2015 The MoF is scheduled to offer two bonds denominated in local currency with 2-year and 5-year maturities. Most likely in anticipation of receiving the debut tranche from the IMF at the beginning of March, the MoF did not offer FX-denominated bonds. After significant FX repayments last week, as today's FX repayments of US$50.0m are minimal, the MoF will not need additional FX proceeds until mid-March. With UAH2.12bn of principal and interest repayments scheduled this week, mostly for VAT-bonds issued in 2010, the MoF might require additional financing and could utilize domestic QE for support. Investment implications: We anticipate no market demand today as local currency bonds with these maturities routinely sell at below-market interest rates. If domestic QE is withheld, we expect no demand today.