Page 49 - UKRRptFeb23

8.5.1 Fixed income - bond news
The Ministry of Finance has attracted UAH 13B from the placement of government bonds. On January 24, the Ministry of Finance drew UAH 13.22B to the state budget through auctions of military bonds. According to the Ministry of Finance, UAH 472.86M was raised from the sale of six-month bonds at 13% per annum compared to 13.43% a week ago. The Ministry of Finance placed nine-month bonds for UAH 23.27M at 16% per annum and 12-month bonds for UAH 1.5B at 18.5%. Another UAH 6.32B came from the sale of two-year bonds at 19.59% per annum. In addition, 4.89B was collected from the placement of securities with a maturity of 2.5 years at 19.75%.
Bonds from Ukrainian cities will be sold in Poland. The National Depository of Ukraine signed an agreement on cooperation with the Central Depository of Poland (KDPW) to establish correspondent relations for "delivery of securities without payment" operations. The NDU explained that this will allow cross-border transfers of securities, namely Ukrainian municipal bonds. KDPW will ensure the accounting of these securities in the depository system of Poland. The NDU added that the placement of Ukrainian municipal bonds on the EU market will help attract capital and create ways to increase the inflow of foreign investments into Ukraine. The reconstruction of Ukrainian cities and the economy will require significant financial resources, and the capital market should play an important role in this, the KDPW clarified. As of today, bonds from the Kyiv, Kharkiv, and Lviv city councils are in circulation in Ukraine, with a total nominal value of over UAH 3.1bn ($82M).
Banks' demand for benchmark bonds brought UAH 23.5B to the budget.
On January 10, the Ministry of Finance attracted UAH 23.52B to the state budget from the sale of domestic government bonds due to growing demand
49 UKRAINE Country Report February 2023 www.intellinews.com