In the Bond UA application, external government loan bonds (also called Eurobonds) have appeared; these securities are denominated in US dollars, but are sold for hryvnia.

Eurobonds are coupon bonds that are currently trading at a discount.

The main income on such bonds arises from the difference between the market purchase price and the par value - the amount that the investor will receive upon redemption at the end of the security's circulation period.

Let's look at an example: if the nominal value of a Eurobond is 1000 USD, and the purchase price of one such bond is 14,000 UAH, then you purchase a paper worth 1000 USD for only 350 USD (approximately), that is, with a discount of 65%.

Such a significant discrepancy between the purchase price and the par value is due to risks associated with the development of the Ukrainian economy (after all, Eurobonds are essentially Ukraine’s external debt) and the postponement of payment dates on these bonds. Payments will be made some time after the end of the war. It is also possible that the final payment amount will be less than the nominal amount.

In addition to the main payment at par, these securities require coupon payments. But for the duration of the war, coupon payments are frozen.

The primary market for such securities is located in Europe and it is there that pricing occurs, which is then mirrored on the stock market in Ukraine. It is with European investors that our government will negotiate the final date and amount of payments for Eurobonds.