It is planned to issue two bonds
The Ministry of Finance of Ukraine is planning to issue two series of sovereign bonds to raise funds for military equipment, sutler purveying and supplies to equip the Armed Forces of Ukraine:
- the sovereign bond titled «military bonds» in a book-entry form totalling 1 bln hryvnias, with life of 2 years, par value of 1000 hryvnias, interest rate of 7% per annum – will be issued to engage internal sponsors (commercial banks, other legal and natural persons). The placement of securities will be made via weekly auctions held by the National Bank of Ukraine on a certain date, which will be distributed through primary dealers;
- «military» treasury bonds the debt on which is payable to bearer, held in a book-entry form and amounting in total to 100 bln hryvnias, with the two-year life, par value of 1000 hryvnias, interest rate of 7% per annum – will be issued to the general investing public. The placement of «military» treasury securities will be carried out after their issue.
Thus, the Ministry of Finance of Ukraine starts placing government securities at fixed rate so that to raise additional funds to increase the government budget. This proposal is a kind of appeal to the community to unite efforts, wishes and intentions in order to interact in solving challenges the nation faces and to give financial aid to the Armed Forces of Ukraine aiming to improve its combat readiness and reinforce its military capabilities.
