Ukraine agrees to restructure GDP warrants
Ukraine has released an updated announcement on the launch of the restructuring process related to the exchange offer and request for consent to change the terms of government derivatives linked to GDP (GDP warrants).
This is stated in the message of the Ministry of Finance, the Ukrainian News agency reports.
The initial launch of the restructuring process took place on December 1, 2025.
The updated announcement takes into account the results of extensive investor consultations and discussions with the Ad Hoc Committee of GDP Warrant Holders, as well as feedback from the broader market on the legal and technical aspects of the transaction.
Ukraine welcomes the statement of support of the Ad Hoc Committee of GDP Warrant Holders for the proposal and encourages other warrant holders to join it.
The Ministry of Finance of Ukraine emphasizes that the proposed terms are the best solution to fulfill Ukraine's long-term commitment to restructure the GDP warrants in order to restore the country's debt sustainability. The proposal has been reviewed by the International Monetary Fund and the Official Creditors Group.
The early voting period has been extended until December 15. The exchange period runs until December 17, and settlement is expected on December 29.
As previously reported, holders of GDP warrants are offered to pay a cash fee of up to 7% for the exchange of securities (restructuring).
The terms of the securities exchange stipulate that 45% of the principal amount of the new Eurobonds B will be redeemed on February 1, 2030 and 2031.
The remainder, i.e. 10%, will be repaid on February 1, 2032.
The interest rate on these bonds will be 4% per annum from their placement until February 1, 2027, then 5.5% per annum until August 1, 2029, and 7.25% per annum for the remaining period to maturity.
As the Ukrainian News agency earlier reported, Ukraine failed to make a payment on these securities in the amount of USD 665 million on June 2.
Earlier, the Ministry of Finance reported that Ukraine would not make payments on government derivatives, which amounted to USD 665.4 million as of April 30.
In August 2024, the Cabinet of Ministers decided to temporarily suspend payments on obligations under 2015 government derivatives (GDP warrants) from May 31, 2025, until the transaction with them is completed.
In October 2015, the holders of 13 out of 14 issues of sovereign and sovereign-guaranteed Eurobonds totaling USD 14.36 billion and EUR 0.6 billion supported their restructuring.
During the restructuring, Ukraine issued GDP warrants for the amount of Eurobonds written off by creditors.
Under the terms of the issue, investors are entitled to a share of real GDP growth (adjusted for inflation) exceeding 3% in 2019-2038, provided that nominal GDP (excluding inflation) exceeds USD 125.4 billion
The issue was initiated by the then Minister of Finance of Ukraine Natalie Jaresko.