Ukraine’s State Land Bank is considering the issuance of bonds backed by future income from the sublease of state-owned land. This was disclosed in an interview with LIGA.net by State Property Fund head Dmytro Natalukha.
According to him, the plan concerns hundreds of thousands of hectares of state land that have already been transferred into long-term sublease through transparent auctions. These agreements are signed for extended periods — up to 14 years or more — creating a stable and predictable revenue stream that could potentially underpin financial instruments, including government bonds.
Natalukha said that, at current market rental rates of around UAH 20,000 per hectare per year, total state revenue from the land bank could reach approximately UAH 16 billion annually. In his view, a bond issue would make it possible to monetize these future proceeds in advance and raise funds immediately rather than wait for lease payments over many years.
At the same time, the specific use of the proceeds has not yet been disclosed. Natalukha said the details are not yet being made public.
Officials stress that the effectiveness of such an instrument will depend on expanding the pool of state land transferred into transparent lease arrangements. State land lease auctions in Ukraine have been held since the fall of 2024 and have already contributed to higher budget revenues.
According to market data cited by LIGA.net, the current minimum rental rate stands at around UAH 12,000–14,000 per hectare, while in some cases it reaches UAH 18,000–20,000. Over the past year, land lease prices in Ukraine have risen sharply, with higher competition and a tighter supply of agricultural land pushing rates upward.
