In nearly 30 years of independence, only 19 Ukrainian cities have entered the municipal bond market.

An even more telling fact: almost 90% of the total issuance volume was accounted for by just three cities — Kyiv, Kharkiv, and Lviv.

As part of the project "Development of the Municipal Bond Market in Ukraine: Analysis of Regulation, Practice, and Potential for Community Recovery," the EU-LEAP team has prepared a study on the practice of local loan bond issuance in Ukraine over the period 1995–2021.

Our analysis showed that:

• the total volume of domestic issuances amounted to approximately UAH 16.9 billion;

• the most recent municipal bond issuances in Ukraine took place in 2021;

• Kyiv remains the only Ukrainian community that has entered international capital markets with its own eurobonds;

• most communities have never used this development financing instrument even once.

  
  

At the same time, the recovery needs of Ukrainian communities today are unprecedented, and international assistance will not be able to remain the sole source of financing for reconstruction.

That is why the issue of developing the municipal bond market is gradually moving from the category of an "interesting financial instrument" to the category of potentially necessary mechanisms for financing the recovery and development of communities.

The project is implemented with the support of the Askold and Dir Fund, administered by ISAR Ednannia within the framework of the project "Strong Civil Society of Ukraine – A Driver of Reforms and Democracy," funded by Norway and Sweden.

The content of this publication is the responsibility of the EU-LEAP Analytical Center and does not necessarily reflect the views of ISAR Ednannia, or the governments of Norway and Sweden.

Check the study

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