Ukraine raises $270 million from sale of war bonds to fund army

Ukraine’s authorities issued battle bonds on Tuesday and mentioned it has increase about 8.14 billion Ukrainian hryvnia ($270 million).

The nation’s finance ministry mentioned in a tweet the bonds can have a yield of 11% with a tenure of 1 yr.

“The proceeds from the bonds will probably be used to fulfill the wants of the Armed Forces of Ukraine and to make sure the uninterrupted provision of the state’s monetary wants beneath the battle,” the ministry tweeted a day earlier. Its web site is at present down.

The nominal worth per bond is 1,000 hryvnia ($33).

The federal government additionally put up bonds with a tenure of two months and a ten% yield. That raised one other $7 million.

The bond sale was carried out via sellers together with Citigroup, Austria’s Raiffeisen Financial institution and Budapest-based OTP Financial institution Nyrt, the Wall Road Journal reported, citing a name between an Ukrainian official and buyers.

CNBC has reached out to the banks for remark.

Ukraine’s armed forces have largely held off Russian troops for the reason that invasion started final week. The smaller nation has to this point defended and retained management of key cities, whereas slowing Russia’s advance on capital Kyiv.

Whereas Ukraine’s resilience has stunned analysts, many nonetheless anticipate Russia to prevail given Moscow’s huge navy sources. In 2020, Ukraine’s navy spending totaled $5.92 billion, a fraction of Russia’s $61.71 billion spent, in keeping with World Financial institution information.

Ukraine has sought to boost funds via a number of avenues as preventing continues and a Russian convoy heads towards Kyiv.

The official Twitter account of the Ukrainian authorities on Saturday posted addresses for 2 crypto wallets, one accepting solely bitcoin and the opposite taking ether and tether, a token that tracks the worth of the U.S. greenback.

As of Sunday, these wallets have attracted $10.2 million value of crypto, in keeping with analysis from blockchain analytics agency Elliptic. That is on prime of the hundreds of thousands in digital foreign money donated to nongovernmental organizations supporting the Ukrainian navy.

— CNBC’s Ryan Browne contributed to this report.