10:11 12.06.2019

Nonresidents buy over half of debut issue of six-year govt bonds

2 min read
Nonresidents buy over half of debut issue of six-year govt bonds

Ukraine's Finance Ministry on June 11, 2019 placed debut six-year government domestic loan bonds for UAH 3.42 billion at 15.85% per annum, and over the half of the securities were bought by nonresidents, Finance Minister Oksana Markarova has said.

"Another victory! Six-year instrument at 15.85%! ... Most [buyers] are nonresidents," she wrote on her Facebook page during a road show, which the Finance Ministry team is conducting this week to place new eurobonds.

"While we are completing meetings with investors in London about seven-year eurobonds denominated in euros and are preparing for a flight to Frankfurt, the Finance Ministry team is simultaneously implementing our debt management strategy for three years on the domestic market," the finance minister said.

In general, on Tuesday, the Finance Ministry managed to attract UAH 6.59 billion, of which UAH 1.38 billion brought from another placement of two-year securities, UAH 0.75 billion of one-year securities, and UAH 0.46 billion each of three- and six-month bonds.

The Finance Ministry, compared with the auctions a week ago, managed to slightly reduce the rate of placement of six-month and one-year bonds – respectively from 18.5% to 18.39% per annum and from 18.5% to 18.45% per annum. To this end, the seller refused to additional demand in the amount of about UAH 600 million. The rate for three-month and two-year securities remained at the same level – 18% and 17.95% per annum, respectively.

In addition, the ministry decided not to sell the six-year bonds under three applications for a total of UAH 200 million, in which the rates reached 16% per annum.

As for the U.S. dollar-pegged papers, the rate remained at the level of 7.25% per annum, and the volume of placement fell to $4.4 million.

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