Ukraine raises UAH 2.3 bln in local bond placement

Обзор облигаций 24.01.2018 Ukraine's Finance Ministry raised UAH 2.3 bln for the state budget with a primary local bond placement held on Jan. 23, the ministry reported. All three types of UAH-denominated bonds drew demand as little more than half of auction receipts — UAH 1.2 bln — came from the sale of three-month bonds, UAH 0.9 bln from six-month bonds while the three-year bonds raised only UAH 0.2 bln. Evgeniya Akhtyrko: Generous interest rates and ample amounts of hryvnias in the banking system maintained strong demand for local bond purchases on the primary market. The receipts of this week's auction exceeded the results of previous one (held on Jan. 16) by UAH 0.7 bln, or 45%. So far this year, the government raised UAH 4.9 bln from the placement of local bonds, showing much higher results from last year when January receipts were UAH 1.1 bln. The weighted-average interest rate for the most demanded three-month bonds declined to 15.89% from 16.00% at the previous auction held on Jan. 16, while the interest rate for six-month bonds did not change and stayed at 16%. Meanwhile, the government so far has not succeeded in forcing the market to buy three-year bonds at a rate lower than 15.70% and satisfied five bids at this rate while rejecting one bid at 16.00%.