FX bonds sold after hiatus

Обзор облигаций 24.06.2015 After a three month hiatus of auctions, the MoF yesterday offered a12-month USD-denominated bond with semi-annual coupon payments and raised US$140.03m un proceeds at a weighted average interest rate of 8.66%. Of the total of six bids at rates between 8.50% to 12.00%, the MoF accepted only three at rates no higher than 8.75% and accepted most of the demand volume, rejecting only US$20.0m in bids, or one-eighth of demand. Investment implications: Demand was quite sufficient as only FX dealers could participate in the auction. Because of the volume, this auction appears to be the first step of fulfilling the EFF program to have the MoF refinance all FX-denominated debt repayments in the local bond market. The MoF has not had to refinance many repayments since the program's approval even though large repayments were made from the beginning of the program through yesterday.