Ukraine Government Issues War Bonds To Raise $270 Million To Fund Its Fight Against Russian Invasion
Ukraine’s government has raised as much as 8.14 billion Ukrainian hryvnias ($270 million) by issuing war bonds, said the government. The bonds issued will offer a yield of 11% with a tenure of one year, said the country’s finance ministry in a tweet.
“The proceeds from the bonds will be used to meet the needs of the Armed Forces of Ukraine and to ensure the uninterrupted provision of the state’s financial needs under the war,” the ministry tweeted a day earlier. The ministry’s website is currently not operational, potentially because of cyber-attacks from Russian hackers.
The nominal value per bond is 1,000 hryvnia ($33).
The Ukrainian government-issued bonds with two months and a 10% yield, which helped the government raise as much as an additional $7 million.
Several dealers, including Citigroup, Austria’s Raiffeisen Bank, and Budapest-based OTP Bank Nyrt, carried out the sale of the bonds on behalf of the government, said a report published by the Wall Street Journal quoting information emerging from a telephonic conversation between investors in the bonds and a Ukrainian official.
There were no comments on the bond sales by the concerned American and other banks.
Since the invasion of Ukraine by Russia began last week, Ukraine’s military forces have mostly been able to hold off Russian soldiers successfully. So far, the smaller neighbor country of Russia has defended and maintained control of major cities, halting Russia’s approach on Kyiv, the capital.
Despite Ukraine’s surprising resiliency, many observers still anticipate Russia to win the war due to the much superior military resources in terms of arms and ammunition and infantry number at the disposal of Moscow. According to World Bank figures, Ukraine’s military budget in 2020 was $5.92 billion, a fraction of Russia’s $61.71 billion.
As the battle intensifies and a Russian convoy approaches Kyiv, Ukraine has attempted to gather finances in various ways.
The Ukrainian government’s official Twitter account published addresses for two crypto wallets on Saturday, one accepting just bitcoin and the other ether and tether, a currency that monitors the value of the US dollar.
According to data from blockchain analytics firm Elliptic, such wallets have garnered $10.2 million in cryptocurrency as of Sunday. This is in addition to the millions of dollars in digital money contributed to non-governmental groups that assist the Ukrainian military.