Ukraine's Ministry of Finance offered six UAH bonds on the first day of October.
Borrowings, as usual, were above Hr.10 billion without significant changes in interest rates.
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Generally, we can divide the bond offering into two categories, one for issues targeted for small investors, primarily retail and banks.
Bonds "for banks" are two and three-year paper that the NBU can add to the list of bonds permitted to cover required reserves. Two-year bills received UAH5.8bn demand vs the UAH5bn cap.
Demand was mostly at a 15.6% rate, so the cut-off and weighted average rates remain unchanged.
Similar was the placement of three-year notes, which was twice oversubscribed. Bids had interest rates not higher than 16.6%, a recent cut-off rate, but the cap was exhausted at 16.59%, moving the cut-off and weighted-average rates 1bp down to 16.59%.
Demand for 12-month bills was UAH1.5 bn, and the MoF accepted all bids, keeping the cut-off rate at 14.65%. Similarly, for a 3.5-year paper, the MoF accepted all bids at 16.8%.
The most interesting offerings were the 1.5 and 2.5-year instruments. The MoF set interest rates at a 45bp premium to 12-month bills for 1.5-year paper and a 50bp premium to two-year bills for 2.5-year securities.
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