Drones, Milk, and a Bank That Survived: Which Sectors Are Currently Attracting Capital Through the Securities Market?

From FPV drone production and the relocation of an aircraft manufacturing enterprise to energy, banking, dairy, and real estate — even during the war, Ukrainian businesses are using the securities market to raise capital. Among the issues registered by the NSSMC this year, we selected several of the most illustrative cases from different sectors of the economy. Their total nominal value exceeds UAH 18.6 billion.*

These examples are important not only because of their scale. They show what Ukrainian companies are currently using capital market instruments for: financing production, relocation, energy projects, lending, strengthening capital, and business development.

Before a share or bond issue enters the market, the NSSMC reviews the documents and information disclosed to investors for compliance with legal requirements. This is one of the fundamental conditions for investor protection and confidence in the market.

Defense: Capital for Drones and Production Relocation

One of the largest private issues in this selection belongs to LLC VYRIY INDUSTRY, a manufacturer of FPV drones and their components. The company is issuing bonds for the first time, with a total nominal value of UAH 5 billion and a nominal value of UAH 1,000 each. The issue provides for a private placement without a public offering.

Another example is JSC MOTOR SICH, an aircraft manufacturing enterprise whose shares were returned to state ownership in 2022 for national security reasons.

The company placed an additional share issue worth UAH 524.5 million. The funds are to be used to implement a government project for partial duplication and relocation of the enterprise’s production to safer regions. The Ministry of Defense has been designated as the project coordinator.

Thus, securities market instruments are also being used for tasks directly related to the resilience of strategic production during wartime.

Energy: A State Fund and the Private Sector

JSC DECARBONIZATION FUND OF UKRAINE (JC DFU) — a state financial institution, 100% of whose shares are owned by the State Agency on Energy Efficiency and Energy Saving — registered a share issue worth more than UAH 704 million.

The Fund finances energy efficiency and renewable energy projects for businesses and municipalities. Amid Russia’s continued attacks on Ukraine’s energy infrastructure, this area is becoming particularly important.

The largest issue in our selection is the UAH 9.4 billion bond issue by LLC Energy Service Company ‘ESCO-PIVNICH,’ whose activities are related to the extraction and wholesale trade of liquid and gaseous fuels.

These two examples demonstrate different ways of using the securities market in the energy sector — both by state entities and private businesses.

Financial Sector: Capitalization and New Lending Opportunities

PJSC BRIDGE BANK IUTE BANK registered a share issue worth UAH 396.8 million.

The bank was established by the Deposit Guarantee Fund for Individuals as a bridge structure during the Resolution of the insolvency of RVS Bank. Subsequently, 100% of its shares were acquired by the Estonian banking group Iute Group.

JSC ALTBANK also registered a significant share issue — worth more than UAH 330 million — strengthening the bank’s capital base.

Another UAH 400 million comes from a new bond issue by LLC NOVAPAY CREDIT, the lending arm of the NovaPay financial service operating within the Nova Poshta ecosystem. The company uses bond issues as part of a program to raise funds for lending to individuals and legal entities.

Thus, in the financial sector, securities are being used for several purposes at once — from strengthening capital to raising resources for further lending.

The Real Sector: From Dairy to Real Estate

The securities market is also being used by companies from sectors that Ukrainians encounter in their everyday lives.

LLC YAGOTYNSKY BUTTER PLANT, one of the country’s largest dairy producers operating under the “Yahotynske” brand, registered bonds worth UAH 500 million.

LLC MARTIN, a Kyiv-based company specializing in the rental and operation of real estate, placed bonds worth UAH 1.37 billion.

What These UAH 18.6 Billion Show

Drones, aircraft manufacturing, energy, banking, lending, dairy production, real estate — this list reveals much more than simply statistics on registered issues.

The securities market is gradually becoming a practical mechanism through which companies from different sectors can raise capital for specific economic purposes.

For some, it is an opportunity to finance production or relocation. For others, it means strengthening capital, raising resources for lending, or financing further development.

The NSSMC’s role in this process is to ensure clear and equal rules for market participants and proper disclosure of information to investors. Before registering each issue, the NSSMC reviews the submitted documents and information for compliance with legal requirements.

For the economy, a broader range of such instruments means an opportunity to transform domestic savings into capital for Ukrainian businesses — from defense technologies and energy to food production.

*The issue volume is the nominal value of the securities issue, not the amount of funds actually guaranteed to be raised. The actual amount of funds the company receives depends on the results of the placement of securities among investors.