You're reading: Ukraine to issue ‘military’ bonds worth Hr 1.1 billion at 7 percent per annum

The Ukrainian Finance Ministry is to make issues of two-year government "military" bonds with worth Hr 1.1 billion at an annual interest rate of 7%. According to government resolutions published on April 15, the first issue is non-documentary government bonds with a face value of Hr 1 billion. The second one is documentary treasury bonds with a face value of Hr 100 million.

 The yield on the bonds issued at a face value of Hr 1,000 will be paid every six months.

Oschadbank has been chosen to act as a general agent for allocating and servicing the circulation and redemption of the treasury bonds and will receive 0.5% from the par value of the sold securities. To maintain liquidity, it is allowed to buy back the treasury bonds at a price not below their par value.

“Such a proposal is an appeal to the community to unite in their efforts, wishes and intention to join the process of resolving national problems and providing financial help to national armed forces in order to increase their combat readiness and boost the country’s defensive capabilities,” the Finance Ministry said in its earlier announcement of the “military” bonds.