Ukraine's National Securities and Stock Market Commission has outlined a path to restart municipal bond issuance as an additional source of long-term financing for local reconstruction, following a discussion of an EU-LEAP Analytical Center study. Participants supported preparing pilot offerings while legislation and market infrastructure continue to improve. The market remains largely dormant, with only 19 cities having issued such bonds over three decades and the latest issuance occurring in 2021. Rules updated in 2026 removed the link between issuance volumes and development budget deficits, allowed base prospectuses, introduced electronic filing and shortened review times. Remaining barriers include lengthy and duplicative procedures, different tax treatment from domestic government bonds, limited access for foreign investors and insufficient institutional support for municipalities. Credible issuance also requires a well-prepared project, a realistic financial model, identified debt-service sources and responsible risk management. Green bonds could finance energy networks, energy-efficient buildings, renewable energy, clean transport and other infrastructure, provided issuers clearly identify the use of proceeds and independently verify measurable environmental outcomes. Participants proposed starting with relatively small, well-prepared projects that could provide models for replication in other cities.

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