Ukraine War Bonds That Pay 11% Are a Risky Bet Investors Want to Buy

Retail traders are willing to take on the risk and help Ukraine against Russia’s invasion, if only they can figure out how to purchase the bonds.

 

The war bonds pay 11%, even higher than the ultra-popular U.S. inflation-protected debt that earns 7.12%.

But unlike those American savings bonds, Ukraine’s debt comes with significant risk as Russia proceeds with its invasion of the country. Some retail investors are willing to take on that risk — and earn that double-digit payout — but right now that’s easier said than done.

 They are scouring investment forums on Reddit and tweeting at trading platforms like Robinhood Markets Inc. and Fidelity Investments, as well as Citigroup Inc., to ask how they can purchase some of the debt. Ukraine raised 8.1 billion hryvnia ($277 million) Tuesday in a sale of war bonds to institutional buyers — part of its effort to tap into global support for its fight against Russia.

 In spite of the devastating turmoil, Ukraine paid about $300 million of bond interest to international investors due Tuesday, honoring its financial commitments.

Kevin van Langen, who lives in Greece, said he looked into how to buy war bonds because it’s a good short-term investment opportunity while he’s saving for a house and another way to help Ukraine. The individual bonds have a face value of 1,000 hryvnia — about $33. 

 

“You take some risk of course, but that’s a great way to help,” van Langen said in an interview. “You can use your savings for something good.”

He also donated 250 euros ($278) through the National Bank of Ukraine, which is raising money to support its military.

Robinhood declined to comment, noting that bonds aren’t tradable on its platform. Citi also declined to comment. Fidelity didn’t respond to a request for comment.