30 years of the Ukrainian government bonds market: Oschadbank is a key participant in the state budget support program

March 10, 2025 marks the 30th anniversary of the first government bond auction in Ukraine. Over this period, the bank has placed more than UAH 3.3 trillion worth of domestic government bonds on market terms, which demonstrates the popularity of this financial instrument. As one of the leading primary dealers and largest investors in government securities, Oschadbank constantly confirms its strategic role in the development of the domestic government bond market.

“As of the beginning of this year, Oschad ranks second in the domestic government bond market with a 20% share. As of January 1, 2025, the volume of military securities in the portfolio of Oschadbank amounted to UAH 109.2 billion in nominal value equivalent. The long-term cooperation between Oschadbank and the Ministry of Finance of Ukraine on the implementation of this financial instrument will continue, as we are well aware of its importance for financing government projects of both social and defense nature,” commented Sergii Naumov, Chairman of the Management Board of Oschadbank.

Government bonds are one of the main sources of financing the state budget, along with international aid and revenues from taxes and customs duties. Since February 2022, UAH 1.46 trillion has been raised through the issuance of government bonds. As for Oshchad, over the three years of the great war, the bank purchased military government bonds totaling UAH 268.6 billion. Investments in domestic government bonds have been and remain one of the most important mechanisms for stabilizing the financial system and preventing a liquidity crisis in times of war. The funds raised are used to finance the needs of the Armed Forces of Ukraine. In this way, investors provide the Ukrainian army with the most necessary things: weapons, ammunition, equipment, food and medicines.

Last year, investments in government debt securities remained an important area of Oschad's investments: the relevant portfolio increased by UAH 72.8 billion (in nominal terms), or 68% since the beginning of the year. In 2024, the bank purchased UAH 120 billion of domestic government bonds. The share of Oschadbank in the growth of domestic government bonds in the banking system reached 32%.

This investment instrument to support the state budget is available to individuals, businesses and foreign investors. Income from government bonds is not subject to personal income tax and military duty.

To purchase bonds on the primary market, an individual or legal entity must apply to primary dealer banks, in particular to Oschadbank, which has the exclusive right to participate in auctions in its own interests or in the interests of a client. Military bonds can also be purchased at the Diia app. The cost of one bond is UAH 1,000 / USD 1,000 / EUR 1,000.

Payments on government bonds are 100% guaranteed by the state. Payments on military bonds are made on time and in full.