UKRAINE: Ukrainian business and citizens boost investments in government bonds by UAH 16 billion in July

In July 2024, Ukraine’s Ministry of Finance raised UAH 38 billion through government bond issuance, comprising UAH 26.4 billion and USD 285.7 million.

Of the total, UAH 35.5 billion were military bonds. The funds are used to meet the state’s financial needs during the wartime situation.

During July, Ukrainian businesses increased their investments in government bonds by UAH 10.6 billion, while individual citizens invested an additional UAH 5.2 billion compared to June. As of August 1, over UAH 1.67 trillion in government bonds are in circulation. The largest shares are held by commercial banks (43.4%) and the National Bank of Ukraine (40.7%). The share of legal entities and individuals has increased compared to the previous month, accounting for 10.2% (+0.5%) and 3.8% (+0.2%), respectively. Non-residents hold 1.9%, while local communities have 0.04%.

Repayments of government bonds amounted to UAH 10.2 billion in July. The refinancing level for government bonds since the beginning of the year stands at 146%, meaning the Ministry of Finance attracts almost twice as much as it repays.

The average yield on UAH-denominated government bonds in July was 15.08%, while for USD-denominated bonds it was 4.66%. Government bonds continue to be the most attractive investment instrument in the market.

Overall, from January to July 2024, the Ministry of Finance raised UAH 289.3 billion through bond auctions. During the wartime period, the total amount raised is UAH 1.1 trillion.