The State Land Bank is considering the possibility of issuing special bonds that will be secured by future revenues from the sublease of state lands. Such a financial instrument may become a new mechanism for attracting funds to the budget and more efficient use of the country's land resources.

The head of the State Property Fund of Ukraine, Dmytro Natalukha, spoke about this initiative in an interview with LIGA.net. According to him, the state owns hundreds of thousands of hectares of land that have already been partially or fully transferred for long-term sublease through open auctions.

Natalukha explained that it is these land assets that are planned to be linked to state debt instruments. The idea is to create bonds that will be secured by stable future income from the sublease of land plots.

He emphasized that sublease agreements are concluded for a long period of time - from 14 years and more. Due to this, revenues from the use of state land are predictable and stable, which, according to the initiators of the project, makes such bonds a fairly reliable financial instrument for investors.

Under current market conditions, the land rental rate is approximately 20 thousand hryvnias per hectare per year. According to the State Property Fund, this allows us to count on the potential annual income of the state from the land bank at the level of about 16 billion hryvnias.

The launch of land bonds is expected to make it possible to scale these revenues and receive a significant part of the funds immediately, without expecting multi-year annual payments under sublease agreements. Thus, the state will be able to attract financial resources faster to implement its programs.

At the same time, Dmytro Natalukha did not disclose details regarding the further use of funds that may be received from the placement of such bonds. He only noted that at present the details of the project are not intended for public discussion.

The initiative could be one of the first large-scale examples of using state land assets as the basis for financial instruments in Ukraine. At the same time, the implementation of the project will require detailed development of guarantee mechanisms, legislative regulation, and assessment of potential risks for the state and investors.