Ukraine successfully completed the restructuring of Eurobonds: the national debt was reduced by $9 billion
Ukraine announced the successful completion of the restructuring of the state debt and settlement of 13 series of Eurobonds, as well as state-guaranteed bonds issued by Ukravtodor. The corresponding notice was published on the website of the London Stock Exchange. Thanks to the restructuring, the public debt of Ukraine was reduced by approximately $9 billion, reported press service of the Ministry of Finance.
The restructuring process included the exchange of 13 series of government Eurobonds and one series of Ukravtodor Eurobonds in the total amount of $20.5 billion ($23.4 billion including interest) for eight new series with a nominal value of $15.2 billion. This allowed to reduce the state and state-guaranteed debt of about $9 billion.
“This represents a 37% nominal reduction in debt obligations from day one of the deal and a 60% reduction in the net present value of debt, one of the largest debt write-downs in modern sovereign debt restructurings,” — noted in the Ministry of Finance.
According to forecasts, debt payments will decrease by 93%, which will allow Ukraine to save $11.4 billion over the next three years. In total, by 2033, debt servicing and repayment costs will be reduced by 77%, which will bring the country additional savings of $22.8 billion.
This agreement meets the requirements of the IMF’s debt sustainability program and was approved by a group of international creditors of Ukraine. The restructuring was carried out with the support of legal advisors White & Case and financial advisors Rothschild & Co.
