Drone maker Vyriy offers bonds with up to 29% stated return, no guarantees
The Inzhur MilTech fund is raising investor money through bonds issued by drone manufacturer Vyriy Industries with a 25% annual coupon rate. With coupon payments reinvested, the stated return could reach 29% before taxes.
Vyriy Industries, a drone manufacturer, is offering bonds with a stated return of up to 29% annually, despite no guarantees of principal repayment. The bond's 25% annual coupon rate includes reinvested payments, potentially increasing the return above the nominal rate over time. Inzhur MilTech fund founder Andrii Zhurzhii explained that the higher rate compensates investors for the added risk of private debt compared to government bonds, which currently yield around 17% annually and are tax-free.
Vyriy bond coupons are distributed every 35 days, and reinvesting those payments can boost the total return for investors. Vyriy's business model, according to founder Oleksii Babenko, enables high returns due to a short cash cycle and rapid capital turnover. The company earned approximately 18% profit on each two-month cycle, allowing Vyriy to reinvest the profits.
Vyriy reported UAH 2.1 billion in EBITDA last year and aims to raise up to UAH 4 billion through the current financing. However, the bonds are unsecured, and investors are solely responsible for assessing the risks, including the company's financial health.
Written by urgent.news from New Voice of Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
