Total purchase of Ukraine’s domestic government bonds reached hr. one trillion ($25 billion) since the start of Russia’s invasion against Ukraine in February 2022. It allowed Ukraine to mobilize resources domestically to finance more than 200 days of war expenses, according to a press release from Ukraine’s Finance Ministry.

“Investments in government bonds have become the second largest source of financing for the State Budget after international aid,” said Minister of Finance of Ukraine Sergii Marchenko. 

Banks, businesses and Ukrainians form a pool of bond holders. The total volumes of domestic government bonds currently in circulation is more than Hr. 1.6 trillion, adding to the bonds issued and bought before February 2022.

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Bondholders include:

  • commercial banks – 42.2 percent
  • the National Bank – 41.5 percent
  • legal entities – 10 percent
  • individuals – 3.8 percent
  • non-residents – 2.4 percent 
  • hromadas (municipalities) – 0.1 percent

Domestic government bonds in circulation by outstanding nominal volume. Source: The National Bank of Ukraine.

State banks boast the largest amount of bonds purchased. According to the data they provided to Kyiv Post: PrivatBank purchased Hr.316 billion ($7.9 billion) of bonds in total, Oschadbank – Hr.154 billion ($3.9 billion), and Sense Bank – Hr.8 billion ($202.5 million). 

Businesses and Ukrainians bought 2.4 times more bonds after Feb. 24, 2022, the Ministry of Finance stated. 

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The Ministry paid Hr.50.5 billion ($1.3 billion) in total coupon income. Out of that Hr. 31.5 billion ($786 million) was paid to Ukrainian individuals and legal entities (excluding banks), and Hr.19 billion ($474 million) was paid to foreign individuals, according to the institution’s data. 

The Ministry of Finance launched government bonds for retail investors in 2016-2017, creating the opportunity to invest in an alternative instrument apart from bank deposits. 

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