Military bonds have become something of a symbol of the war economy. At first glance they look quite attractive, but not everything is so simple. The terms of purchase and risks can vary greatly, so before investing money, it is worth learning about the key nuances of this instrument.
Types and terms of military bonds
According to the definition of the National Bank, military bonds are domestic government loan bonds (debt securities) that the government issues in order to borrow money to finance the needs of the AFU. The government guarantees 100% repayment and interest payments, and the Ministry of Finance handles their servicing.
The Ministry of Finance issues hryvnia and foreign currency military bonds. The latter can be purchased for US dollars and euros. The nominal price of military bonds today is as follows: UAH 1000/$1000/1000/1000 EUR per unit. However, their value may differ depending on the type:
- discount - usually short-term (up to a year), they are sold cheaper than the face value, but at redemption the government pays the full face value. The investor's income is the difference between the purchase price and the face value;
- coupon (interest-bearing) - mostly long-term (more than a year), the investor receives not only the nominal value, but also regular interest payments.
The Ministry of Finance notes that buyers of military bonds can get up to 19.5% per annum. However, the real rate depends on the term of the bond. Now hryvnia issues have terms from 1 to 2.9 years and yield from 14.65% to 18.35% per annum. Usually longer bonds offer a higher rate, although exceptions are possible. Currency war bonds have much lower interest rates: on average 4.39% per annum in USD and 3.23% in EUR. Data from the Ministry of Finance auctions show that Ukraine has issued 81 military bonds since the beginning of the full-scale war with the Russian Federation. In 2025, the state managed to raise more than UAH 194 billion from the sale of such securities.
Every Tuesday the Ministry of Finance sells military bonds, which are primarily bought by the primary dealers: Ukrgasbank, Ukreximbank, Bank Yuzhny, FUIB, PrivatBank, Oshchadbank, Sense bank, Credobank, OTP Bank and Raiffeisen Bank. Individuals and legal entities can purchase war bonds from them or from licensed brokers such as ICU, Dragon Capital, Credit Agricole, Univer Capital, etc. It can also be done through the application "Dia" (section "Services"), which cooperates with dealer banks and brokers.
The Ministry of Finance notes that any Ukrainian citizen or foreigner can purchase military bonds without commission, and income and investment profit from such securities are not taxable. The NBU emphasizes that financial institutions do not check the source of origin of the money invested in the government bonds.
At the same time, banks and brokers determine the specific conditions for buying military bonds. Here there is a certain difference from the statements of the Ministry of Finance:
- banks or brokers can sell hryvnia military bonds at a price exceeding the nominal value of UAH 1,000.
- not all banks allow foreigners to buy military government bonds. For example, Ukrgasbank, Oschadbank and Sense Bank note that the service is available only to Ukrainian citizens. But brokers Dragon Capital, ICU, KINTO, Western Investment Group provide such service to foreigners;
- banks and brokers often set higher investment thresholds than the nominal value of one bond (UAH 1000). For example, Oshchadbank, Raiffeisen Bank and OTP Bank - from UAH 10 thousand, Credobank - from UAH 50 thousand, Credit Agricole - from UAH 200 thousand, and Tascombank - from UAH 300 thousand.
Thus, the terms of investing in military bonds vary greatly depending on the chosen intermediary.
Advantages and risks of military bonds
Financial analyst, member of the Ukrainian Society of Financial Analysts Andriy Shevchyshyn told Dengi.ua that military bonds have more favorable conditions than bank time deposits. You can take money from the latter only after the expiration of the term, while bonds can be sold at any time.
"However, you can get less than expected from the sale of military government bonds before their maturity. That is, your yield will be a little less because there is a buying price and a selling price. You buy at the upper boundary, and sell at the lower one", - Shevchyshyn notes.
The expert also noted that, in his opinion, today in military bonds can be stored in hryvnias from inflation.
"According to the NBU forecast, inflation in 2025 will be about 10%, the yield of military bonds - 16%, which is 6% more. That is, with each 1000 UAH you can earn 60 UAH over inflation," explains Shevchyshyn.
According to the expert, it is important that the state even under martial law guarantees the return of money. For this purpose, the NBU can print additional hryvnia, use external aid or place new government bonds to repay the old ones. Shevchyshyn believes that the issue of foreign currency war bonds will be reduced because they were used in fraudulent schemes to withdraw funds.
Smart Family Office financial expert Nadezhda Bayor named Dengi.ua such main advantages of military bonds as reliability and predictable income without taxation. Among the risks:
- currency - if an investor buys hryvnia bonds but spends currency, his final income will also depend on exchange rate fluctuations;
- inflationary - if inflation is high, the real yield of war bonds decreases;
- liquidity - bonds cannot always be sold at a favorable/acceptable price for the investor (owner).
"So the main risk is not in the instrument itself, but in external and economic factors," Byor emphasizes.
In case of hesitation to buy discount or coupon bonds, the expert advises combining both types, as it reduces risks and makes the portfolio more flexible. But if the investor needs regular cash flows, it is better to choose coupon bonds. Bayor notes that although the risk of default exists, the probability of default by the state is extremely low. In the extreme case, there may be a restructuring of the terms to the advantage of investors.
Thus, military bonds are currently one of the easiest and safest investment instruments for individuals. If you do not invest a lot of money, you should not expect big profits from such investment. Military bonds for an average Ukrainian is rather a way to protect their hryvnia savings from inflation (+ opportunity to earn a little) and a reliable tool to legalize money. When buying such bonds, no one asks about the origin of funds, and after repayment the amount of investment + income is considered legalized. However, even with such advantages, you should not lose vigilance, because high inflation and force majeure in the economy can bring the profitability of military investments in the negative or significantly delay the return of invested money.