The Ministry of Finance of Ukraine before payments of Hr 12 billion on previously issued government domestic loan bonds raised Hr 12.33 billion at primary auctions on Jan. 19, and at the same reduced the rate for three-months securities from 10% to 9.45% due to the offer limitation and for the first time since February last year sold securities maturing in May 2027.
As stated in the message of the Ministry of Finance on its website, it limited the offer of the “shortest” securities to Hr 500 million, while the demand for them exceeded Hr 1.2 billion (hereinafter at par), which made it possible to reduce the rate.
The demand for the “longest” securities, which were last sold at of 9.95% at auctions at the end of February in 2020, amounted to Hr 1.33 billion. The Finance Ministry refused only one application for Hr 50 million at 12.6%, and raised Hr 11.5 billion at 12.5%.
To ensure the required amount for payments, the ministry had to slightly raise rates for the most popular 14-months and two-year securities, respectively from 11.7% to 11.75% and from 11.85% to 11.95%, but immediately receive Hr 10.1 billion. At the same time, the Finance Ministry refused applications at rates up to 11.9-12%.
The placement rate for 3.5-year government domestic loan bonds remained the same 12.15%, and their sales amounted to Hr 580 million. The Finance Ministry refused only two applications for Hr 50 million at rates up to 12.25%.
