Ukraine has completed operations to delay payments on state debt for 2 years.
This is stated in the message of the Ministry of Finance, Ukrainian News Agency reports.
On August 10, Ukraine announced the completion of operations for the management of state debt, launched on July 20, 2022.
The Ministry of Finance notes that three weeks of negotiations with holders of bonds of foreign state loans and state derivatives (GDP warrants) ended with the successful introduction of changes to the terms of issue of all bonds of foreign state loans and state derivatives of Ukraine, as well as Eurobonds guaranteed by the state.
Holders of about 75% of the total outstanding nominal amount of 13 series of bonds of foreign state loans voted for changes in the terms of issue of these bonds (at the same time, at least the votes of holders of 2/3 of the total outstanding nominal amount of these bonds were needed to approve the changes).
In addition, as required, each individual series of Eurobonds received more than 50% of the vote for changing the conditions.
Due to the changes, the maturity of all 13 sovereign Eurobond series will be extended by 2 years and coupon payments for the next two years will be deferred until the end of the 2-year period, and deferred income will be charged interest on the corresponding contractual rate until the end of the deferral period.
Holders of approximately 93% of the total outstanding notional amount of state derivatives took part in the voting for changes in the terms of issue of state derivatives (GDP warrants), while holders of approximately 91% of the total outstanding notional amount of state derivatives voted for the changes.
According to the report, a positive vote for the changes is evidence of investors' desire to support Ukraine, as well as reduce the potential negative effect of these tools on the economy of Ukraine in the post-war growth.
Investors also supported proposals from the State Automobile Road Agency (Ukravtodor) and the Ukrenergo national energy company on changes to the terms of issue of their respective Eurobonds issued under state guarantees.
These operations were a continuation of the initiative announced on July 20, 2022, by Ukraine's international partners in the G7 and the Paris Club (with the exception of Russia) to suspend payments to service Ukraine's debt until the end of 2023, with the possibility of extending this suspension for another year.
As Ukrainian News Agency earlier reported, in July, the government proposed that Eurobond holders voluntarily extend the circulation period of all Eurobonds by 24 months, as well as postpone the payment of interest income on them for the same period.
Transactions with state debt in 2022 were proposed to be carried out before August 15, 2022 by amending the conditions for issuing bonds in agreement with bondholders.
The final maturity date of each bond is deferred for a period of 24 months.
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