2024-09-04T16:17:00+03:00 Economy 2024-09-18T04:04:26+03:00

Ukrainian news

Ukraine completes restructuring of Eurobonds for USD 20.5 billion

Ukraine completes restructuring of Eurobonds for USD 20.5 billion

Ukraine has announced the successful completion of the debt restructuring operation and settlement of thirteen series of state Eurobonds and state-guaranteed Eurobonds issued by Ukravtodor.

This is stated in the message of the Ministry of Finance, the Ukrainian News agency reports.

This transaction was carried out with the aim of restoring debt sustainability, preserving macro-financial stability and increasing state budget resources in the context of continued russian military aggression against Ukraine.

The restructuring process involved the exchange of thirteen series of government Eurobonds and one series of state-guaranteed Ukravtodor Eurobonds in the amount of approximately USD 20.5 billion (approximately USD 24 billion including capitalized interest) for eight new series of Eurobonds with a face value of USD 15.2 billion.

As a result of this agreement, the state and state-guaranteed debt of Ukraine was reduced by about USD 9 billion.

This means a nominal reduction in the value of the debt by 37% from the first day of the agreement and a reduction in the net present value of the debt by about 60% (at a discount rate of 14%).

This is one of the largest debt write-downs in recent sovereign debt restructurings.

Debt payments are reduced by 93%, resulting in savings of USD 11.4 billion over the next three years.

In addition, debt servicing and repayment costs will decrease by 77% by 2033, which will save a total of USD 22.8 billion.

This agreement meets the goals of the IMF's debt sustainability program and was approved by the Group of Creditors of Ukraine.

The restructuring was carried out in cooperation with White & Case as legal advisors and Rothschild & Co as financial advisors to the Ministry of Finance of Ukraine.

As the Ukrainian News agency earlier reported, the total state (direct and guaranteed) debt of Ukraine for 2023 increased by 30.4% or USD 33.87 billion to a record USD 145.32 billion.

In 2022, the total state debt increased by USD 13.39 billion, or 13.66%, to USD 111.34 billion.

In 2021, the state debt increased by 8.52%, or by USD 7.69 billion, to USD 97.95 billion.

In 2020, the total state debt increased by 6.9%, from USD 84.4 billion to USD 90.3 billion.