Ukraine has reached an agreement with the Eurobond Owners Committee.
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Prime Minister Denis Shmyhal announced this today, July 22, on his Telegram channel.
Today we have reached fundamental agreements with the Committee of Eurobond Holders of Ukraine. This is an important stage in the debt restructuring process, which will save USD 11.4 billion on debt servicing over the next three years and USD 22.75 billion by 2033, he noted.
According to the Prime Minister, thanks to this, Ukraine will be able to free up resources for urgent needs – defense, social protection and reconstruction.
The press service of the Ministry of Finance informs that today Ukraine published a statement on the London Stock Exchange on achievements with the Eurobond Owners Committee as a result of closed meetings from July 12 to 19 on fundamental agreements on the restructuring of sovereign debt securities issued on international capital markets in the amount of USD 23.4 billion.
The Ministry of Finance notes that reaching fundamental agreements is an important stage in the process of restructuring Ukraine’s state external commercial debt:
- the restructuring agreement will provide that the existing Eurobonds in issue will be exchanged for a package of new Eurobonds with a nominal reduction in the cost of debt of 37% initially and a reduction in the net present value of debt of approximately 60%;
- After the restructuring is completed, the maturity of the Eurobonds will be extended – the first repayment in the amount of $1.172 billion will take place in 2029. Without the restructuring, the principal amount of $9.381 billion (excluding capitalized interest) would have been due between 2024 and 2029.
According to the agreements reached, new Eurobonds will be issued:
- four series of Bonds A maturing in 2029, 2034, 2035 and 2036;
- four series of B Bonds maturing in 2030, 2034, 2035 and 2036.
The agreements reached are supported by the Committee of Creditors of Ukraine and correspond to the targets of the IMF Extended Fund Facility program,” the Finance Ministry emphasizes. “At present, Ukraine intends to implement the restructuring agreement as quickly as possible, once the documentation is ready.
Source: Racurs
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