Bìznes Inform (Mar 2023)
The Formation of Debt Capital by Enterprises in Ukraine
Abstract
The article is aimed at studying the bank lending and bond issuance as a means of attracting debt capital in Ukraine. The mechanisms of attracting capital through banks and the debt capital market are considered; the main advantages and disadvantages of their use are outlined; the key criteria for choosing a source of financing and forming debt capital are determined. The volumes of attraction of bank loans by economic enterprises and volumes of issuance of corporate bonds by enterprises for the last five years are estimated. The purpose of the article is to study the use of bank loans and bond issuance by enterprises in the current realities with the definition of their disadvantages and advantages. On the basis of the research, it was found that the economic and social situation in the country affected the attraction of debt capital by enterprises. It is determined that the volume of attracting bank loans remained at the level of previous years, while the bond issuance decreased to critically low values. An analysis of statistical data from the Ministry of Finance of Ukraine and the National Bank of Ukraine revealed an increase in the share of non-performing loans in 2022, which is one of many negative trends in the debt capital market in Ukraine and a consequence of the ongoing large-scale invasion by the russian federation, which has begun on February 24, 2022. The results of the carried out study may be useful for: clarifying the role of bank lending and bond issuance as sources of attracting long-term debt capital; characterizing the situation in the domestic financial market; identification of ways to increase the efficiency of the process of attracting debt capital by domestic enterprises. The article specifies that enterprises will now prefer bank lending to meet their borrowing needs, as this source is more affordable and guarantees the receipt of capital in the required volumes, while the issuance of corporate bonds remains a promising alternative.
Keywords
