(FT) The Ukraine finance ministry says it plans to float a “war bond” to raise funds for its defense forces as it wrestles the Russian invasion.
The government, through the commissioner for public debt management Yuriy Butsa, says the “military bond” is for everyone who wants to support the country’s budget during difficult time.
The government reassured the investors that it would not default on the debt despite the ongoing crisis of the war with Russia. The state will also not conduct any restructuring on the debt.
The bond will carry a one-year maturity, while its interest rate will be determined in the auction.
The bond offer comes even as Butsa says Russia’s initial plan in its invasion has failed dramatically, emphasizing that the government remains fully functional.
The bond, which will be offered to both local and international investors, happens amid capital controls by the country’s central bank. Analysts say overseas investors could find it difficult to participate in the auction, although local demand is expected to be decent.
Investors are still anxious, with Ukraine’s existing bond facing a sharp decline on worries of potential default. The country’s dollar bond maturing in 2032 fell to 31 cents on Monday.
