The government sold bonds worth 4.6 billion hryvnias: where will the funds go?
29 April 06:50
The Ministry of Finance of Ukraine raised nearly 4.6 billion hryvnia equivalent for the state budget following an auction to place domestic government bonds. Domestic government bonds denominated in hryvnia and U.S. dollars were offered at the auction on April 28. This was reported by the Ministry of Finance of Ukraine, according to "Komersant Ukrainian"
According to the ministry, the proceeds from the placement of war bonds are being directed toward supporting the Armed Forces of Ukraine and strengthening the country’s financial stability.
Which domestic government bonds did the Ministry of Finance place?
At the auction on April 28, investors were offered hryvnia-denominated and dollar-denominated bonds. Dollar-denominated bonds accounted for the largest share of proceeds.
| Currency | Maturity | Yield | Amount raised |
|---|---|---|---|
| Hryvnia | 1.3 years | 15.15% per annum | 92 million UAH |
| Hryvnia | 3 years | 16.15% per annum | 55 million UAH |
| US Dollar | 2 years | 3.24% per annum | $100 million |
In total, nearly 4.6 billion UAH equivalent was raised for the state budget.
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How much has the state raised through OVDPs since the beginning of the year
The Ministry of Finance reported that since the beginning of 2026, Ukraine has raised over 140 billion UAH through the placement of domestic government bonds. Since the start of the full-scale war, the amount raised through such instruments has exceeded 2.2 trillion UAH.
These funds are one of the domestic sources of budget financing during wartime. OVDPs are purchased by banks, businesses, citizens, and other investors.
What are OVDPs in simple terms
OVDPs are domestic government bonds. Essentially, the government borrows money from bond buyers and commits to repaying it within a specified timeframe with interest.
For the budget, this is a way to raise funds for current needs. For investors, it is an instrument with a fixed yield.
Why this is important for the budget
During the war, Ukraine faces significant expenditures on defense, social payments, infrastructure restoration, and maintaining government operations. Therefore, the issuance of OVDPs remains a crucial mechanism for raising funds domestically.
It is particularly telling that dollar-denominated bonds accounted for the largest volume at the last auction. This indicates investor demand for foreign currency instruments and allows the state to raise funds in various currencies.
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