The Finance Ministry of Ukraine has placed hryvnia-denominated government domestic loan bonds for a record high amount of Hr 17.2 billion, of which Hr 10.9 billion were 5.5-year bonds popular among non-residents.
“Terms – longer! Borrowing rates are lowered again!” Finance Minister Oksana Markarova said on Facebook.
According to information on the website of the Ministry of Finance, the rates on the issues less than a year were reduced by 0.2-0.5 percentage points (p.p.) compared to the auctions a week ago. In particular, three-month securities were sold at 16.23 percent with the cut-off rate being 16.4 percent, six-month securities at 16.41 percent and 16.52 percent respectively, and 12-month equities at 16.51 percent and 16.59 percent.
The cut-off rate on two-year (840 days) equities, which were last offered two weeks ago, fell by 1 percentage point, to 16.75 percent, while the weighted average rate by 1.28 p.p., to 16.42 percent per annum.
The longest, 5.5-year government bonds were placed at a weighted average rate of 15.45 percent with the cut-off rate standing at 15.5 percent per annum, which is 0.39 p.p. and 0.35 p.p. lower than the rates at a similar auction three weeks ago.
The demand for the “shortest” securities fell to Hr 20.1 million (at a par value), for six-month securities to Hr 434 million, while on 12-month securities it amounted to Hr 1.85 billion, while the supply limit set by the Ministry of Finance was Hr 500 million.
