Ukraine launches new financial mechanism: how securitization can attract money for reconstruction

A new mechanism for attracting long-term capital is being created in Ukraine. The Verkhovna Rada adopted in the second reading Bill No. 15172 on securitization and covered bonds. It is expected that the new instruments will allow banks to release resources from already issued loans and direct funds to new lending.

Oleksiy Semenyuk, Chairman of the National Securities and Stock Market Commission, explained how the new mechanism can work and why it is important for the Ukrainian economy.

How securitization will work

The mechanism can be explained using the example of bank loans. A financial institution issues loans for housing, business development or other needs. This money is returned gradually, so part of the bank’s capital remains effectively “tied up” for years.

Securitization allows such loans to be pooled and securities to be issued for future cash flows that investors can purchase. Thanks to this, the financial institution gets the opportunity to release the resource and use it for new loans.

That is, capital that has already been directed into the economy can actually help attract the next money.

Why is this for Ukraine

According to the data provided in the material, Ukraine may need about $588 billion for recovery and reconstruction over the next ten years. At the same time, approximately 40% of the necessary financing can potentially be provided by the private sector.

Securitization can become one of the channels for attracting such capital, in particular for projects that require financing for years: housing, energy, infrastructure and modernization of production.

For comparison, this tool is already actively used in Europe: according to the data provided by Oleksiy Semenyuk, in 2025 alone the volume of securitized products was €252.3 billion. For Ukraine, such a market is only beginning to form.

What are covered bonds

The law also provides for the development of covered bonds. They differ from securitization in that the assets remain on the issuer’s balance sheet, and the fulfillment of obligations to bondholders is additionally ensured by a special pool of assets.

For the investor, this should create an additional level of protection, and for the issuer – the opportunity to attract long-term financing for high-quality assets.

How it works in practice

Semenyuk cites the experience of the Dutch bank ABN AMRO as an example. In 2025, the bank, together with the European Investment Bank group, carried out a synthetic securitization of a portfolio of loans already issued to businesses in the amount of over €1 billion.

The transfer of part of the credit risk allowed to free up capital and take on the obligation to direct €1.2 billion of new financing to small and medium-sized businesses, as well as mid-cap companies.

One law is not enough

At the same time, the adoption of the law does not yet mean the automatic launch of a full-fledged securitization market in Ukraine.

Its operation requires bylaws, clear rules, quality assets, issuers, investors, appropriate infrastructure, and trust of market participants.

The NSSMC is also working on other mechanisms for capital market development — personal investment accounts, simplification of issuance procedures, development of municipal bonds and investment funds, and regulation of virtual assets.