Ukraine has made the last offer to holders of GDP warrants issued for a nominal amount of USD 2,591.219 million, which provides for their exchange at a ratio of 1.34 for new amortized Eurobonds of Ukraine B maturing in 2030-32.
This is indicated in a statement on the Irish Stock Exchange and in the Decree of the Cabinet of Ministers No. 1554 of December 1, the Ukrainian News agency reports.
In addition, holders of GDP warrants are also offered to pay a cash fee of up to 7% for such an exchange.
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 period remaining before 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) starting 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.
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
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