Since the beginning of this war, the Ministry of Finance has begun issuing war bonds — special purpose government debt securities, or DGBs (domestic government bonds). The money received from selling them is used to cover the social and defense expenses of the government during martial law.
Recently, they are being actively bought not only by the NBU and other banks, but also by individuals and private companies. By buying these bonds, Ukrainians are helping the country in difficult times with their money. In exchange, the government promises them a 100% guaranteed and relatively high rate of return.
As of May 6, 38,500 individuals and companies had purchased the war bonds.
On April 27, about 1,000 of them received 3.3 billion UAH in redemption of the first issue.
The results of the auctions are published at the link.
Detailed statistics on the purchase of military DGBs by citizens and businesses is published by the National Bank's Depository on Mondays.
Basic conditions for the purchase of war DGBs
The Ministry of Finance issues war bonds denominated in both hryvnia and foreign currency. Foreign currency DGBs can currently be purchased only in the currency in which they are denominated;
- The par value of one bond is 1,000 UAH, USD 1,000, or EUR 1,000;
- The rate of return is determined at auction. The rates on previously issued hryvnia bonds were 9.5%, 10% and 11% per year depending on the term to maturity (3 months, 6 months or 1 year, respectively), 3.7% on dollar bonds (1 year), and 2.5% on bonds denominated in Euros (8 months);
- War bond income is exempt from taxes and fees.
How to buy war DGBs
Auctions to sell war bonds are held almost every Tuesday. Only banks, which are primary dealers, can participate (there are now 11 of them).
Citizens and businesses can buy war DGBs at any time from banks or licensed investment companies. Such transactions are classified as transactions in the secondary DGB market.
When choosing a financial partner for transactions with war bonds, one should pay attention to the possible commissions and the cost of other related services provided by these institutions.
You can buy war bonds in the amount of:
- 1,000 UAH and more in the following banks and investment firms: Ukrgasbank, Ukreximbank, Alfa-Bank, FUIB, Pivdenny, Monobank, ICU, Univer Capital, Dragon Capital, BTS Broker, and Kinto;
- 20,000 UAH and more: in Credit Dnipro Bank;
- 50,000 UAH and more: in Oschadbank under a simplified procedure;
- 100,000 UAH and more: in Privatbank, Kredobank, and OTP Bank;
- 300,000 UAH and more: in Tascombank;
- 500,000 UAH and more: în Raiffeisen Bank and Credit Agricole Bank.
You can buy war DGBs in both bank branches and through mobile applications.