Wednesday 4 September 2013

Cbonds.Info - Ukraine debuts 10-year domestic bonds, longest term ever

Cbonds.Info - Ukraine debuts 10-year domestic bonds, longest term ever:

"Concorde Capital Research:

Ukraine’s Finance Ministry placed 10-year bonds on the market on September 3, according to the ministry’s website. As a result, MinFin attracted UAH 200 mln at a 10% yield.

Alexander Paraschiy: It was the first time that MinFin floated bonds of such a long maturity. Apparently, it was to address the so-called “friendly demand” from state banks. Commercial banks do not have long money and would never agree to a 10% yield. For instance, the best price offered by commercial banks (declined by MinFin yesterday) was at a 16% yield, and seven-year bonds were placed at the same auction at a rate of 14.3%.

In fact, the placement’s sum (UAH 200 mln) showed that it was just an experiment and will hardly become a key instrument for spreading state liabilities over a longer period of time."

'via Blog this'

No comments:

Post a Comment