Ukraine has raised $206 million (6.04 billion hryvnia) from its latest issue of domestic bonds to boost funding of the country’s armed forces and military resistance to Russia’s invasion.
Dubbed ‘war bonds’, they offer an 11% yield for the one-year notes and are denominated in lots of 1,000 hryvnia ($33), according to the Ministry of Finance. The 35-day tranche pays 10%.
The latest auction adds to the some $691 million already raised since the invasion started.
The ongoing impact from the war on the economy and government finances means there is significant risk for investors, like local banks and asset managers
Vitaliy Vavryshchuk, head of macroeconomic research at Kyiv-based Investment Capital Ukraine said patriotism was motivating many to buy the bonds.
“Those who buy military bonds do it at below market rate,” he said.
“Investors are sacrificing a part of their financial income for the sake of supporting the country. Nobody is earning anything for trading at 11%, there is no commission, no fees.”
Ukraine is also receiving financial aid from the IMF, EU.
