Finance Ministry holds 2nd auction in history to exchange government bonds

On April 16, the Ministry of Finance held the second auction for the exchange of bonds (switch auction) of domestic government loan (domestic government loan bonds), which was held with high demand from market participants.

This was announced in a statement by the Ministry of Finance, Ukrainian News Agency reports.

According to the results of the auction, applications were submitted for a total amount of over UAH 13.4 billion, of which UAH 10 billion were satisfied.

In exchange for reserve government bonds with maturity on May 21, 2025, investors were offered the issue of reserve bonds with a maturity date of October 25, 2028, with a nominal yield of 15.01% per annum and a coupon payment of UAH 75.05 every six months.

The weighted average yield according to the auction results was 15.45%, while the marginal yield was 15.60%.

In total, 19 out of 22 applications were satisfied.

As part of the exchange, bonds with a maturity date of May 21, 2025 in the amount of 9,758,415 pieces will be credited to the securities account of the Ministry of Finance for redemption and cancellation.

Holding an exchange auction allows for effective management of the state debt, reducing short-term burdens on the budget, and ensures more effective liquidity management.

As Ukrainian News Agency earlier reported, the Ministry of Finance previously reported that military bonds are primarily a tool to support the state budget during a full-scale invasion by the russian federation, and not a tool to maximize income from investment activities, therefore rates on military government bonds remain fixed.