The Cabinet of Ministers of Ukraine and the holders of GDP warrants have resumed negotiations on the terms of restructuring these securities.
This was announced by Bloomberg, citing sources, Ukrainian News Agency reports.
A group of investors in these securities, led by hedge funds, signed non-disclosure agreements this week to enter into so-called "limited" negotiations.
The term "limited" means that the negotiations involve the exchange of non-public information.
Typically, this also involves temporary restrictions on the sale of securities, since the topics discussed may be sensitive for the market.
Among the holders of the warrants are hedge funds Aurelius Capital Management LP and VR Capital Group. They are advised by Cleary Gottlieb Steen & Hamilton LLP and PJT Partners Inc.
As Ukrainian News Agency earlier reported, Ukraine failed to make a payment on these securities in the amount of USD 665 million on the specified date on June 2.
Earlier, the Ministry of Finance reported that Ukraine would not make payments on government derivatives, the amount of which as of April 30 amounted to USD 665.4 million.
In August 2024, the Cabinet of Ministers decided to temporarily suspend payments on obligations under government derivatives of 2015 (GDP-warrants) from May 31, 2025, until a transaction (deal) with them is carried out.
In October 2015, the owners of 13 out of 14 issues of sovereign and state-guaranteed Eurobonds for a total amount of 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 claim a share of the real GDP growth (taking into account inflation) that exceeds 3% in 2019-2038, provided that nominal GDP (excluding inflation) exceeds USD 125.4 billion. The initiator of the issue was the then Minister of Finance of Ukraine, Natalia Yaresko.
Who we are: About us, Contacts. How we write news and our principles: Editorial code. We did our best. If you found this valuable – please support us.
To request a correction, please send an email.