Fundraising Through Government Bonds
Ukraine raised the equivalent of UAH 17.4 billion for its state budget in February through auctions for domestic government bonds, known as OVDP. These auctions are held every Tuesday, with all proceeds from the sale of these war bonds directed toward supporting the Armed Forces of Ukraine and bolstering the nation's financial resilience. This mechanism is a crucial part of Ukraine's wartime economic strategy, allowing citizens and institutions to contribute directly to the nation's defense.
The funds raised in February came from several bond issues:
- Bonds with a 3.8-year maturity and an annual yield of 13.1% (weighted average 12.92%) brought in UAH 8.4 billion.
- 3-year bonds with a 16.43% annual yield (weighted average 16.42%) raised UAH 2.2 billion.
- 1.2-year bonds with a 15.40% annual yield (weighted average 15.34%) generated UAH 2.1 billion.
- Euro-denominated bonds with a 1.4-year maturity and a 3.25% annual yield (weighted average 3.14%) attracted €92 million.
Ukraine's Financial Policy
Since the start of 2026, the state has raised UAH 81.5 billion through these instruments, and since the beginning of the full-scale invasion, this figure exceeds UAH 2 trillion. Individual bonds have a face value of UAH 1,000, USD 1,000, or EUR 1,000. All funds acquired are used to finance the military and strengthen the country's financial stability.
The successful raising of significant capital through domestic government bond issuance highlights Ukraine's proactive fiscal policy under wartime conditions. This approach not only provides essential funding for the army but also helps maintain the country's economic stability during an exceptionally challenging period. Future auctions will serve as a key indicator of the state's ongoing ability to attract investment and meet its financial obligations amidst economic uncertainty.