Public debt restructuring: Ukraine announced exchange offer for Eurobonds

On August 9, 2024, Ukraine announced an exchange offer and consent solicitation regarding for its existing sovereign Eurobonds and Ukravtodor guaranteed Eurobonds.

This was reported by the press service of the Ministry of Finance, Ukrinform saw.

The Ministry of Finance says the proposal to investors incorporates the terms of the agreement-in-principle reached with the bondholders' Ad Hoc Committee on July 22, as detailed in the Exchange Offer and Consent Solicitation Memorandum.

It is noted that the mandatory exchange of existing state Eurobonds and state-guaranteed Ukravtodor eurobonds will enter into force under two conditions: if approval from the owners of at least 66⅔ percent of the total amount of all existing bonds is received by August 27, and also by the same deadline – approval from the owners more than 50 percent of each individual series of bonds.

Read also: Naftogaz makes payments under Eurobonds in accordance with restructuring schedule

Voting will close on August 27, 2024 at 17:00 New York time.

The results of the vote will be announced on August 28, 2024, or as soon as possible after the end of the vote.

"Once the deal is completed, Ukraine will reduce its debt stock by USD 8.67 billion and save USD 22.75 billion in debt payments by 2033, allowing these budget resources to be used towards addressing the urgent needs of a country at war,” commented Yuriy Butsa, Government Commissioner for Public Debt Management.

As reported, on July 22, 2024, Ukraine reached agreements-in-principle with creditors on the restructuring of $23.4 billion in external debt, after the completion of which the repayment period on eurobonds will be extended.