The amount of government domestic loan bonds in ownership of nonresidents from September 6 to September 7, 2017 grew by UAH 1.148 billion, to UAH 1.734 billion, the National Bank of Ukraine (NBU) said on its website on Thursday.

The Finance Ministry of Ukraine at an auction on September 5, 2017 raised UAH 1.2 billion to the national budget.

The ministry sold two-year hryvnia-pegged bonds for UAH 673.785 million and three-year bonds for UAH 540.48 million at 14.4% and 14.5% per annum respectively.

On August 17, 2017, government domestic loan bonds in ownership of nonresidents expanded by UAH 460 million, to UAH 471.1 million.

A well-informed source on the market told Interfax-Ukraine that the increase is linked to the purchase of hryvnia-pegged government domestic loan bonds at an auction held on August 15. The Finance Ministry then sold one-year and three-year bonds for UAH 1.298 billion at 14.4% and 14.46% per annum.

Later Citigroup Global Markets Holdings Inc. (the United States) issued credit-linked notes (CLN) for $18.664 million. The securities were issued under Reg S rule (for non-U.S. investors) to secure hryvnia-pegged government domestic loan bonds for UAH 460 million due on June 10, 2020.

CLN will be due on June 12, 2020.

The six-month coupon is UAH 31.372 million. It will be paid in June and December in the U.S. dollars at the exchange rate effective at the moment of payment.

On August 23, 2017, the volume government domestic loan bonds in ownership of nonresidents grew by UAH 115 million, to UAH 586 million.

Citigroup later issued CLN for UAH 115 million due on June 6, 2020. Other details of the securities are not specified.