This week, the Ministry of Finance of Ukraine during the primary auctions for the sale of domestic state loan bonds (OVDP) was able to attract only 245.6 million hryvnias. This is the minimum amount for the last several years and is 6-7 times less than at previous auctions.
According to the Ministry of Finance, two issues of bonds maturing in June 2026 and 2027 were offered at the auction, each with a volume of 5 billion hryvnias (at face value). However, it was actually possible to attract only 97.8 million hryvnias and 151.6 million hryvnias, respectively. At the same time, the marginal bond rates remained at the level of 15.85% and 16.95% per annum, and all submitted applications were satisfied.
A partial decrease in demand for OVDP may be related to the fact that the Ministry of Finance has planned a debut auction for the exchange of bonds issued in 2019-2020 in the amount of 41.08 billion hryvnias with repayment on February 26, for two-year OVDP, which last week were placed at 16.65% yearly
We will remind you that the state budget for 2025 provides for the placement of OVDP bonds in the amount of 579.22 billion hryvnias, while the volume of their repayment will be 561.98 billion hryvnias. It is also planned to attract 39.3 billion dollars of external financing to cover the deficit of the state budget, which amounts to 1 trillion 875.87 billion hryvnias.
