Starting August 13, the Inzhur MilTech investment fund intends to open up the opportunity for its investors to purchase corporate bonds of the defense company Vyriy Industries through its instrument.
Starting August 13, the Inzhur MilTech investment fund intends to open up the opportunity for its investors to purchase corporate bonds of the defense company Vyriy Industries through its instrument.
According to Forbes, the certificates of the Inzhur MilTech investment fund offered for sale contain corporate bonds of Vyriy Industries, which the fund will buy back.
«This defense technology company registered the issue of such securities for UAH 5 billion on August 4, but plans to raise up to UAH 4 billion from retail investors,» the publication notes.
According to Forbes, Inzhur MilTech will invest the raised funds in Vyriy Industries corporate bonds, and the company will use them to scale production.
The yield on such securities is 25% per annum in hryvnia.
The Inzhur investor will not buy Vyriy Industries corporate bonds directly, but will purchase a certificate of the Inzhur MilTech investment fund with an entry threshold of UAH 1,000. Such certificates will be available for purchase until December 31, 2026.
At the same time, an important nuance is that the 25% annual rate in hryvnia is fixed not for the entire term of the fund, but for the first year. «After the first and second years, Vyriy Industries will have the right to repay the bonds early or agree on a different rate of return,» the article states.
According to Inzhur founder Andriy Zhurzhiy, the rate can be reduced to 22% per annum.
«The agreement is now for the first year. If the company continues to need financing and the parties agree, we can extend it for the second or third year,» says Zhurzhiy.
The fund is planned to be liquidated in July 2029. After that, investors will be paid the funds from the redemption of bonds along with the accumulated income.
Vyriy Industries explains this step by attracting financing for scaling.
«The maximum need now is UAH 4 billion, but this amount can be reduced due to prepayments and bank loans, so for now we plan to attract UAH 2 billion relatively quickly. If we understand that money is needed, the amount will increase to UAH 4 billion, and UAH 1 billion is essentially technical,» commented Vyriy Industries CEO Oleksiy Babenko.
Vyriy Industries will be the first defense manufacturer to raise funds under this model. At the same time, Zhurzhiy admits that if it works, it could become a permanent funding mechanism for other Ukrainian defense companies.
As dev.ua wrote, according to the CEO of Vyriy Industries, the company underproduced 30,000 drones due to the July searches by the State Bureau of Investigation.
Comment hidden for violating commenting rules.