The Ministry of Finance of Ukraine successfully conducted its fourth auction this year for the exchange of domestic government bonds (OVDP) in April 2026, satisfying bids totaling 5.7 billion UAH at nominal value.
This is reported by Finway
New Terms for Investors and Exchange Parameters
Within this switch auction, investors were offered the opportunity to exchange OVDP maturing on May 20, 2026, for newly issued bonds with a maturity date of June 13, 2029. Thus, the new bonds have a duration of over three years (1,146 days), and the weighted average yield for this placement was 16.2% per annum.
“Investors were offered to exchange bonds maturing on May 20, 2026, for a new issue maturing on June 13, 2029. The duration of the new bonds is over 3 years (1,146 days). The weighted average yield of the placed bonds was 16.2%”
Redemption of Old Issues and Market Impact
As a result of the auction, 5.66 million OVDP maturing on May 20, 2026, will be credited to the issuer’s account, corresponding to a total of 6.03 billion UAH. After this, all these securities will be redeemed and canceled, allowing the Ministry of Finance to effectively manage the state debt.
OVDP exchange auctions are viewed as an important tool for actively managing the state’s debt obligations. They provide an opportunity to reduce the short-term debt burden on the budget, contribute to extending the average debt term, and support the liquidity of the domestic government securities market.