Bonds: Strong interest in military bills
Since the beginning of March, more than UAH20bn has been raised for the budget through military bonds sold by the Ministry of Finance in the primary market. A significant part was bought by private retail investors.
Since the beginning of the Russian war against Ukraine, the Ministry of Finance has been offering military bills to investors every Tuesday and has raised more than Hr 20bn in the primary market. Another Hr 20bn in bonds was bought by the National Bank of Ukraine. The vast majority of military bills were purchased by Ukrainian banks, but non-banking institutions and private investors are increasingly supporting the country’s financial needs in these difficult times.
Last week, the Ministry of Finance raised Hr 5.4bn, and more than 10% of bonds were purchased by non-banking institutions and private investors. More than 1,200 deals were concluded on the secondary market over the week for a total of over Hr 960m. Thus, the portfolios of non-banking institutions grew by Hr 700m and private investors by Hr 255m last week.
ICU view: Tomorrow, the Ministry of Finance will again offer military bills and we expect that the demand from domestic investors will be at least as strong as in previous weeks. At the same time, after an unsuccessful attempt to place FX-denominated bills, this week the Ministry of Finance will offer only bills denominated in local currency. The MoF optimistically kept the schedule for next week with a pre-war set of securities.
RESEARCH TEAM: Vitaliy Vavryshchuk, Alexander Martynenko, Taras Kotovych
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