Transformation of the capital market: what new opportunities NSSMC has in store for investors and businesses

Government bonds (OVDPs) account for about 80% of the annual trading volume on the Ukrainian securities market. Last year, the total trading volume amounted to nearly UAH 2.5 trillion. One of the goals for the market’s development is to expand opportunities for attracting investment and create conditions for the use of other financial instruments.

Maksym Libanov, NSSMC Commissioner, spoke about the market’s development prospects, overcoming differences in taxation, new securitization instruments, and attracting investment to the MilTech sector during one of the panel discussions at the International Sustainability Forum 2026.

Tax arbitration and prospects for European integration

Today, the key factors behind the dominance of government bonds in the domestic market remain the risk-free nature of the instrument and tax disparities. Income from government bonds is taxed at a rate of 0%, while for all other investment products — from bank deposits to corporate securities — the total tax burden reaches 23%.

“To offset this difference and bring yields in line with those on government bonds, the private sector is forced to increase its profitability by nearly a quarter (25%) solely through tax measures. This imbalance and tax arbitrage must be eliminated, as the market cannot develop fully under such conditions,” said Maksym Libanov.

According to him, the main driver and catalyst of investment demand — from both domestic and European investors — is EU integration and the harmonization of Ukrainian legislation with EU standards. Currently, foreign private capital in Ukraine is present primarily in the form of strategic investments (particularly in the MilTech and agribusiness sectors), as well as reinvestments by existing owners.

Securitization and covered bonds: launch of new instruments in 2027

To attract large-scale private capital, Ukraine needs to provide investors with familiar international standards. Specifically, this involves expanding the range of sustainable financing instruments (ESG, Social, Sustainable Link).

The signing by the President of Ukraine of the Law “On Securitization and Covered Bonds” became an important legislative foundation. These instruments will allow financial institutions and banks to replenish their resources and liquidity against issued loans (mortgages, consumer loans, etc.) and to channel “long-term” capital into the economy.

The Law comes into force on 01 July of next year. During the transition period, the NSSMC, in cooperation with the National Bank of Ukraine, will develop and adopt all necessary regulatory legal acts.

“We have already held preliminary discussions with financial institutions that are considering the possibility of including the first issuances of such instruments in their financial plans for 2027. Our goal is to create a regulatory framework that will stimulate both investment and lending to the real sector,” emphasized the NSSMC Commissioner.

Attracting capital to MilTech: issuer security vs. investor transparency

There are already practical examples in Ukraine of the defense and technology sector raising private capital through corporate bond issuances totaling several billion UAH. This indicates strong demand for market-based instruments among domestic developers.

“But there is a certain nuance here: any borrowing entails the need for additional disclosure of information, which automatically increases the security risks for the borrower and the issuer. At the same time, our task as a regulator is to ensure transparency and provide investors with all the necessary information to make an informed investment decision. So the challenge we are currently working on is how to ensure a sufficient level of security for the issuer without restricting investors’ access to key information,” noted Maksym Libanov.

The Commission is currently testing special measures on a pilot basis using the Vyriy Industries case as a model. If the pilot is successfully completed, the regulator is prepared to scale these mechanisms for the mass market, ensuring a balance between the security of defense enterprises and investor protection.