The Ministry of Finance of Ukraine at the next auction on March 24 attracted UAH 3.39 billion to the state budget from the sale of domestic government loan bonds. Compared to the previous placement, the amount of funds attracted decreased slightly: a week earlier, the government managed to receive UAH 3.53 billion. At the same time, the yield was increased for one of the issues, reports Banker.ua with reference to the regulator’s data. The PromPolitInform portal informs.
This time, investors were traditionally offered military government bonds denominated in hryvnia. The greatest demand was concentrated in two issues. The first brought UAH 1.31 billion to the budget, and the weighted average yield on it was 15.13% per annum. The maturity date of these securities is March 24, 2027. For comparison, at the previous auction, the rate for a similar instrument was 15.12%.
The second issue raised UAH 2.08 billion. These are bonds maturing on June 14, 2028, with a yield of 15.85% per annum. It was this instrument that formed the bulk of the proceeds from the auctions.
Military bonds remain one of the key mechanisms for financing state needs in a full-scale war. They can be purchased by both citizens of Ukraine, business representatives, and foreign investors. In fact, this is an instrument that allows not only to save and increase funds, but also to maintain the country’s financial stability.
Resources raised through the sale of government bonds are directed to the state budget and used to cover the country’s most important expenses during martial law. First of all, this is the financing of social obligations and the security and defense sector. Thus, the demand for military bonds directly affects the state’s ability to stably perform its functions.
