The Ministry of Finance of Ukraine at the primary auctions for the placement of military bonds on Tuesday, May 17, was able to attract UAH 7.46 billion, which is 57.4% more than a week earlier, when the Ministry of Finance managed to achieve only partial refinancing of payments on earlier issued papers.
As reported on the agency’s website, this was possible due to the growth in sales of 18-month bonds, first offered last week: if then their sales amounted to UAH 87.2 million, then this Tuesday it was UAH 3.86 billion, and the number of applications increased from 19 to 29.
Almost the same number of bonds maturing in three months were sold as at previous auctions – by UAH 1.32 billion, while sales of six-month bonds decreased to UAH 2.27 billion from UAH 3.35 billion a week earlier, with a decrease in the number of applications from 46 up to 37.
Despite the call of the National Bank to think about raising rates, the Ministry of Finance kept the rates on all bonds at the same level: three-month – 9.5%, six-month – 10% and 18-month – 11.5% per annum.
The number of buyers of domestic government bonds (OVGZ) among the population and businesses increased to 1.7 thousand last week from 1.5 thousand a week earlier.
As reported on the website of the National Bank of Ukraine (NBU) on Monday, citing data from the depository, the purchase amounted to about UAH 0.3 billion, $24 million and EUR3.2 million, compared to about UAH 0.3 billion, $1.4 million, respectively. and EUR0.1 million the week before last.
“As of April 25, more than 9.1 thousand citizens and business representatives of Ukraine became owners of military government bonds in the amount of about UAH 5.8 billion, $36 million and EUR25.2 million,” the National Bank said.
The regulator recalled that since the placement of military government bonds on March 1 at 20 primary auctions, the Ministry of Finance was able to attract about UAH 36.6 billion, $93.8 million and EUR176.5 million to the state budget.
“The largest portfolio of military government bonds is still concentrated among primary dealer banks,” the NBU specified.
According to him, the volume of investments by non-residents has remained stable over the past few weeks – more than UAH 50 million.
As reported, the total volume of issuance of military bonds is up to UAH 400 billion. They can be bought by the National Bank, which has already purchased these securities under a separate procedure for UAH 60 billion, including UAH 20 billion last week and the week before last.
The nominal rate on hryvnia government bonds is 10-11% per annum, on dollars – 3.7%, on euros – 2.5%. The term of circulation is up to 15 months.
The Ministry of Finance of Ukraine at primary auctions on Tuesday, April 19, for the first time will offer buyers the full range of military bonds – both hryvnia and currency in dollars and euros.
According to the announcement of the Ministry of Finance, in particular, hryvnia military bonds with maturity in 6 months will be put up for auction. and 14 months, as well as 12 months. dollar bonds and 7-month. euro bonds.
Rates on these hryvnia bonds at the last auctions were respectively 10% and 11% per annum, on dollar bonds – 3.7%, and on euro bonds – 2.5% per annum.
As reported, the Ministry of Finance last week, at the seventh auctions for the placement of military bonds, was able to attract UAH 6.17 billion compared to UAH 0.96 billion a week earlier and UAH 3.33-4.88 billion in the previous three weeks. Currency notes were not offered last Tuesday.
The total volume of issuance of military bonds is up to UAH 400 billion. They can be bought by the National Bank, which has already purchased these securities under a separate procedure for UAH 40 billion.
At market auctions since March 1, their sales amounted to UAH 34.9 billion, $11.9 million and EUR143.4 million.