Today, Tuesday, the Ukrainian Ministry of Economy announced that it had issued war bonds - to finance its armed forces in their fight against the Russian invasion - worth 8.1 billion griffins (about 270 million dollars).
The Ministry of Finance has placed military bonds worth UAH 8.1 billion.
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And the British Financial Times said, in a report yesterday, that Ukraine is planning to issue a "war bond" to fund its armed forces in its fight against the Russian invasion as the country sought to reassure international investors that it will not default on its debts.
Such type of bonds are issued by the government as a debt bond to finance military operations in times of war or conflict.
The Ministry of Finance revealed its plans to raise funds to finance its war effort.
In a telephone interview with investors and bond fund managers yesterday, the government's Commissioner for Public Debt Management Yuriy Potsa described the fundraising process as a "military bond" aimed at "everyone who wants to support the budget in these trying times."
Botsa told investors that "Russia's initial plan has already largely failed" while emphasizing that "the government is operating at full capacity" and that "Treasury operations are operating at full capacity" despite the military offensive from the neighboring country.
The central bank imposed capital controls as an emergency measure, which will make it difficult for foreign investors to participate in the auction, according to one of the fund managers on the call, who said the bonds should attract "decent domestic demand".
The sale comes after a sharp drop in current bond prices, as investors fear the Russian invasion will prompt a default on the country's debt.
Dollar bonds due in 2032 fell to 31 cents on the dollar yesterday.
"We are not planning any restructuring and we will repay our debt accordingly," Potsa said, adding that "the money is already on the way" for Ukraine to pay a scheduled coupon of about $290 million to holders of international bonds due today.
In addition to seeking money to fund the war effort, the Ukrainian official made a direct appeal to bond investors to take further steps to "make the pain inflicted on Russia as difficult as possible."