Priscila Azevedo Rocha
Thu, March 3, 2022
(Bloomberg) -- Ukraine plans to auction another war bond next week to raise funding for its military and its resistance to Russia’s invasion, according to a person familiar with the matter.
The government will use its regular Tuesday slot for what it calls “military bonds,” the person said, declining to be identified before the official announcement. The finance ministry confirmed the plans, issuing a market announcement that includes a one-year bond auction.
Ukraine raised 8.1 billion hryvnia ($277 million) in the first such sale earlier this week. That event drew global attention as people other than professional investors sought to buy the debt to show support for the country.
The proceeds from the auctions will go to “priority humanitarian aid needs,” which include clothes and footwear, blankets, and hospital beds, according to a document seen by Bloomberg. They’ll also fund protective gear such as helmets and bulletproof vests, as well as communication equipment and laptops.
Ukraine’s war bonds have similar characteristics to the debt it sells regularly in peacetime, and are one of a number of funding measures the country has put in place to raise money for both its armed forces and civilians.
Yuriy Butsa, Ukraine’s debt chief, told Bloomberg Television Tuesday that the government is also looking at options including foreign-currency issuance.
Officials at the debt management office are working on ways to help new investors access next week’s auction after technical issues on Tuesday.
Since the war started last week, Ukraine’s finance ministry cut off access to its website from abroad to avoid cyber attacks, making it difficult for investors to get access to information. The ministry plans to communicate with investors via its Twitter and LinkedIn accounts.
The government wants to make access easier as it taps the global swell of support for the country in its war with Russia. Crypto wallets it set up last week have already received donations totaling more than $40 million. Including an NGO that funds the military, and the figure tops $50 million.
And around the world, private citizens have rallied to the country’s side. Many in neighboring countries have offered rooms and shelter to Ukrainians fleeing the war. Meanwhile, Russia has become a commercial pariah, hit by sweeping sanctions that have crippled its markets.
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