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Ukraine’s Government Borrows Equivalent of Almost UAH 400 Billion through Auctions to Sell Domestic Government Debt Securities since Early 2023, and over UAH 650 Billion Total since Martial Law Was Imposed

Ukraine’s Government Borrows Equivalent of Almost UAH 400 Billion through Auctions to Sell Domestic Government Debt Securities since Early 2023, and over UAH 650 Billion Total since Martial Law Was Imposed

According to the NBU Depository, in the first nine months of 2023, the government of Ukraine raised UAH 277,810.8 million, USD 2,525.7 million, and EUR 709.3 million from offering domestic government debt securities through auctions and allocated UAH 179,006.6 million, USD 2,466.9 million, and EUR 588.0 million for redemption of domestic government debt securities.

In January–September 2023, the Ministry of Finance borrowed in the domestic debt market UAH 105,698.2 million more (in equivalent) than it spent to redeem domestic government debt securities, specifically UAH 7,756.8 million more in September (in equivalent). The rollover of investments into domestic government debt securities in the first nine months of 2023 is 129% at par in all currencies at the current official exchange rate.

The maximum yield on war bonds issued in September was 19.20% per annum for hryvnia-denominated bonds, 4.80% per annum for U.S. dollar-denominated bonds, and 3.25% per annum for euro-denominated bonds. 

The domestic debt market was revived thanks to the joint efforts of the government and the National Bank of Ukraine.

In total, since russia launched its full-scale invasion of Ukraine through 30 September 2023, the government raised UAH 430,201.4 million, USD 4,454.8 million, and EUR 1,686.7 million through primary auctions and allocated UAH 392,344.3 million, USD 5,260.2 million, and EUR 1,250.6 million for redemption of domestic government debt securities.

Today, everyone can purchase war bonds and strengthen the financial sustainability of Ukraine.

Find below detailed statistics by NBU Depository on war bonds offered through auctions, as of 1 October 2023.

As before, primary dealers – the banks – hold the largest portfolio of war bonds.

The second-largest portfolio of war bonds is held by Ukrainians and domestic businesses. As of 1 October, it comprised:  

  • UAH 22,374.9 million or 26.5% of the total value of purchased domestic currency-denominated war bonds (UAH 27 403,4 million or 33.3% as of 1 September)
  • USD 880.4 million or 60.8% of the total value of U.S. dollar-denominated war bonds (USD 984.2 million or 66.2% as of 1 September)
  • EUR 97.4 million or 16.5% of the total value of euro-denominated war bonds (EUR 95.9 million or 16.3% as of 1 September). 

Overall, the portfolio of war bonds owned by individuals and legal entities made an equivalent of UAH 58.3 billion as of 1 October compared with  UAH 34.5 billion as of 1 January 2023.

As of 1 October, nonresidents held UAH 14,286.2 million, USD 23.1 million and EUR 0.1 million in war bonds, more than 5 times the level at the beginning of the year.

In September, the Ministry of Finance redeemed UAH 8,822.9 million and USD 388.9 million of war bonds.

Find out more about the military domestic government debt securities here. The table presents data at amortized face value.

For reference

On 22 March 2022, the NBU began to publish weekly statistics of the NBU Depository related to war bond transactions. In the beginning of 2023, the NBU switched to monthly publication of relevant releases as of the first day of the month. Previous data are available by tag war bonds.  

 

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