Holders of Ukrainian dollar bonds initiate appeal to the government to improve conditions after restructuring

Some investors who own Ukrainian dollar bonds are initiating an appeal to the government demanding more favorable terms after last year’s restructuring, stating that changes in GDP-linked securities have worsened their positions. This was reported by Bloomberg.

According to sources familiar with the situation, investors who exchanged warrants in December 2025 received a new class of dollar debt (class C), which has better protective mechanisms compared to the previous classes A and B. Currently, some holders of old securities are discussing the possibility of appealing to the government with the initiative to resume negotiations on improving the terms.

Law firm Weil, Gotshal & Manges is consulting investors and may coordinate a joint appeal to the Ukrainian government. If no agreement is reached, the bondholders are considering filing a lawsuit.

After the report, Ukraine’s dollar-denominated bonds fell in price, becoming among the worst performers in emerging markets. Papers maturing in 2036 were trading at 60.4 cents per dollar as of 1:25 p.m. in London.

Investors are also looking into whether the new IMF program for Ukraine includes a potential debt restructuring. On Thursday, the fund approved a four-year $8.1 billion support program for Ukraine, noting that additional debt relief may be needed in the future.

GDP warrants are a specialized debt instrument tied to economic growth rates. In 2024, they were not included in a broad restructuring due to the complexity of the mechanism and the possible large payments after the end of the war. At the same time, in December 2025, the parties agreed to exchange the warrants for a new class of bonds worth up to $3.2 billion.

Among the main contentious issues remain investor voting rights and mechanisms for protecting against potential “loss recovery” during future restructurings. Some holders of class A and B securities believe that their positions have worsened since the protective provisions expired in January. During the initial restructuring of 2024, the interests of bondholders were represented by Amundi, BlackRock, Wellington Management and Amia Capital.

Previously, the government of Ukraine and the holders of GDP warrants resumed negotiations on a possible restructuring. During previous consultations this month, the parties failed to reach an agreement on the terms of a debt review of $3.2 billion.

In early December, Ukraine agreed with the Special Committee of GDP Warrant Holders to exchange securities with a nominal value of $2.59 billion for new amortized Eurobonds maturing in 2030–2032 and a cash reward of up to 7%.