Ministry of Finance attracted UAH 55 billion through the issue of domestic government bonds in June

In June 2024, the Ministry of Finance of Ukraine attracted UAH 38.41 billion and USD 407.33 million through the issue of government bonds - UAH 55 billion in equivalent.

Government bonds are one of the main sources of financing for the State Budget, along with international aid and revenues from taxes and customs duties. 

UAH 35.3 billion of the total amount of domestic government bonds issued in June are War Bonds. Investors in War Bonds provide the Ukrainian army with the most necessary supplies: weapons, ammunition, equipment, food and medicine. 

The rollover rate in domestic government bonds in June was 120% for hryvnia-denominated government bonds and 134% for dollar-denominated government bonds. This means that Ukraine is attracting more financing through government bonds than it has to repay under its existing obligations to investors.

Domestic government bonds continue to be the most attractive investment instrument. In June, the weighted average yield on hryvnia-denominated domestic government bonds was 15.58%, while on dollar-denominated bonds was 4.63%.

As of July 1, there were over UAH 1.64 trillion worth of domestic government bonds in circulation. The largest share is held by commercial banks (43.4%) and the National Bank (41.3%). This is followed by legal entities (9.7%), natural persons (3.6%), non-residents (2.0%), and territorial communities (0.03%).

In total, in the first half of 2024, the Ministry of Finance of Ukraine attracted UAH 251.28 billion equivalent from the placement of domestic government bonds at auctions. During the martial law period, this amounted to UAH 1.07 trillion.

Investments in domestic government bonds are one of the most important mechanisms for stabilizing the financial system and maintaining the country's financial liquidity during the war. Investors in domestic government bonds support the government in financing its priority expenditures. The funds raised are used to win the war, support the economy and eliminate the consequences of russia's aggression. 

Details on War Bonds are available here.