Ukrainian Finance Ministry prices debut Feb 2028 bonds at 16.8%
MOSCOW. June 19 (Interfax) - The Ukrainian Finance Ministry at a debut auction for the placement of domestic government bonds maturing in February 2028 set the placement price at 16.8%, while it placed bonds due in August 2027 at 16.2% per annum a week earlier.
Ukrainian media reported, quoting the ministry's website, that the offering was UAH 4 billion at face value, with demand of UAH 5.53 billion compared to UAH 5.02 billion for the August 2027 bonds a week earlier.
There were 22 bids at between 16.1% and 16.8%, but almost all were at the highest rate, since the weighted average yield was at the level with the cut-off.
Prices for the shortest bonds, maturing in a year, stopped falling despite the fact that last week the National Bank again lowered its policy rate by 0.5 percentage points to 13.0%.
The offering was UAH 4 billion, and demand UAH 5.51 billion versus UAH 5.37 billion a week earlier; the cut-off rate remained at 14.75%, and the weighted average price even rose slightly, from 14.71% to 14.72% per annum.
The ministry managed to lower the cut-off price for two-year bonds by another 0.1 percentage points compared to auctions a week ago, to 15.4%, and the weighted average price by 0.19% to 15.28%, however, demand for them fell to UAH 0.35 billion from UAH 10.92 billion a week earlier.
The Finance Ministry satisfied all 86 bids across three auctions for hryvnia bonds, raising UAH 8.62 billion compared to UAH 11.35 billion at previous auctions, including UAH 2.72 billion with non-competitive bids.
At the first auction for 13-month bonds since March, the cut-off price remained at 4.66% per annum, and the ministry was able to place all bonds offered at the auction for $200 million, rejecting only one of 66 bids at 5%.
The National Bank of Ukraine lowered the policy rate by 1 percentage point effective April 26, to 13.5% per annum, and effective from June 14 to 13.0%. In that period the Finance Ministry managed to lower the cut-off prices for one-year bonds by 1.25 pp, two-year bonds by 1.6 pp and three-year by 1.1 pp.