The Cabinet of Ministers of Ukraine on Wednesday approved the issue of government domestic loan bonds worth up to UAH 229 billion with redemption in 2025-2047 for the exchange of previously issued government bonds with redemption in June 2017-November 2030, owned by the National Bank of Ukraine (NBU), an Interfax-Ukraine has reported.

The interest rate on the new bonds was set at an inflation rate for the last 12 months plus 1.5 percentage points (pp), according to a respective Cabinet resolution available.

In case of deflation, an interest yield will be paid at a rate of 1.5% per annum.

The explanatory note to the document clarifies that subject to the swap will be UAH 221.6 billion at par in the bonds from the National Bank's portfolio at an average rate of about 12.85% per annum, as well as UAH 7 billion in the amount of a coupon yield on them, which was accrued and unpaid on the date of the transaction.