Finance Ministry raises UAH 1.106 b from sale of domestic bonds at off-schedule auctions on Tuesday

Ukraine's Finance Ministry raised UAH 1.106 billion from the sale of government domestic loan bonds at three off-schedule auctions on Tuesday, having kept their profitability rate at the level of previous auctions.

As the ministry said, five-year bonds were sold to the tune of UAH 477 million, while seven-year ones were sold to the tune of UAH 300 million.

Three-year index-linked bonds (pegged to the hryvnia-U.S.dollar forex rate) were sold to the tune of UAH 329 million, whereas their sales at the previous similar auction held on September 25 stood at UAH 370 million.

Two bids were submitted for the purchase of five-year bonds, one bid was submitted for seven-year bonds and three bids for index-linked bonds.

The ministry initially planned only four auctions for October to sell five- and seven-year bonds. At October 17 auctions, the ministry sold UAH 2 billion worth of government domestic loan bonds, and a week later bonds were sold to the tune of UAH 1 billion, a profitability rate at all the auctions was set at 14.3%. Market operators note that the bonds were placed under "amicable" bids, as the current yield on the bonds on the secondary market is much higher.

According to the State Treasury Service, state borrowings are currently effected ahead of schedule: with the target figure for January-October 2012 being UAH 82.83 billion, actual borrowings as of October 29, 2012 totaled UAH 87.09 billion, including UAH 58.31 billion raised on the domestic market.

Expenses on servicing state debt in January-October 2012 are planned at UAH 22.51 billion, including UAH 19.05 billion paid as of October 29, 2012, of which UAH 13.8 billion is for domestic debt.

The debt repayment target for the ten months of 2012 is set at UAH 59.92 billion, of which UAH 52.48 billion, including UAH 28.65 billion for domestic debt, has been repaid already.