In an effort to quickly shore up cash for its armed forces in wake of Russia’s invasion last week, the government of Ukraine began offering war bonds to international investors on Monday, so far raising US$277 million.
On Monday, Ukraine’s Ministry of Finance jumpstarted a crowdfunding campaign with hopes of raising $1.6 billion for the country’s military that is currently fighting against Russian armed forces. The war bonds are denominated in Ukraine’s domestic currency, the hryvnia, and have a return of 11% and a par value of about $33, as cited by Bloomberg.
However, shortly after the ministry’s announcement, investors eager to help Ukraine’s fight against Russia soon ran into a series of complications. The finance ministry was forced to temporarily shut down the website to foreign traders in an effort to avoid a potential cyber attack, while lack of information regarding the bonds’ settlement process left some risk-averse investors on the sidelines.
In the interim, Ukraine’s central bank opened a designated account for donations last week, allowing people around the world to contribute funds. The government also directed those eager to help to crypto addresses, which accepted donations in bitcoin and other virtual tokens. Data from blockchain analytics company Elliptic showed that over $17 million was raised as of Tuesday morning.
Information for this briefing was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.