Ukraine is placing $500 million in Eurobonds maturing in 2029 at 6.3%,

(Interfax-Ukraine). The initial yield guidance was 6.625%. The transaction was oversubscribed thrice. In May, Ukraine placed $1.25 billion in Eurobonds maturing in 2029 at 6.876%. BNP Paribas and Goldman Sachs are organizing the transaction. In September, the Ukrainian government faces a 2021 peak foreign debt repayment – over $2 billion.

Yesterday the Finance Ministry sold $285 million worth of bonds, 21% less than the previous week.

The sale covered half of UAH 15.6 billion in principal repayments due today. Interest rates on all six bonds were unchanged from the previous week, the Ministry reported. They ranged from 10.99% for 1-year hryvnia bonds to 12.59% for 5-year hryvnia bonds. The Ministry also sold €8 million worth of 1-year Euro bonds at 2.5%. Demand may have been weak as investors were waiting for tomorrow’s meeting of the central bank’s rate setting board.

The Finance Ministry has tripled proceeds from its weekly bond auction, netting the equivalent of $361 million yesterday.

This figure compares with $113 raised million last week, the Ministry reports on Facebook.  Yields were virtually unchanged for the six bonds offered. The most popular hryvnia bond, the 2-year, offered a yield of 12.09%. Investors also bought $65 million worth of 1-year dollar bonds, which carried a yield of 3.7%, the Ministry reports on its website.

Surging purchases of Ukrainian government bonds by international investors,

high prices of Ukraine’s export commodities, and central bank dollar purchases contributed to Ukraine’s foreign reserves rising by almost 2% in June, to $28.4 billion. International investor share of government bonds increased by $450 million in June 2021. To keep the hryvnia from overvaluing, the National Bank of Ukraine earned $583 million in net dollar purchases in June, the central bank reports. On July 1, Ukraine’s gross reserves amounted to 4.3 months of imports, a level seen as comfortable.

In the first auction since the central bank decided to keep the prime interest rate unchanged at 7.5%, sales of Ukrainian government bonds jumped by 39% yesterday, to the equivalent of the $416 million,

 the Finance Ministry reports on Facebook. Cut off rates remained the same: 6 months – 9%; 13 months – 10.99%; 18 months. – 11.3%; 2-year – 12%; 3-year – 12.3%; and 5-year – 12.59%. In the only foreign currency bond offering, $112 million worth of one year dollar denominated bonds sold at last week’s rate: 3.7%.

Two years after Ukraine started to cooperate with Clearstream, external investment in government bonds has doubled,

the share of public debt in national currency has increased to 39%, and 5-year bonds have won acceptance, the Finance Ministry reports. In a press conference last week with representatives of the Luxembourg-based international depository, Ministry officials said external investors now hold UAH 98.3 billion, or $3.6 billion, in Ukraine government bonds.