The Ministry of Finance of
Minister of Finance of Ukraine Natalie Jaresko said: “Today, we close one important chapter in
Settlement of the exchange offer involves the
restructuring of c.US$15 billion of Ukraine’s external debt, achieves a 20%
debt reduction for Ukraine (c.US$3 billion) and allows Ukraine to avoid paying
any of the previously scheduled US$8.5 billion of principal falling due under
such bonds through the end of 2018. This successful debt operation is a key
part of the implementation of Ukraine’s IMF-supported EFF Program approved in
March 2015, and represents the outcome of seven months of intensive work of all
Ukrainian authorities, coordinated by the Ministry of Finance, to convince
Ukraine's bondholders of the necessity of a debt restructuring.
Holders of the thirteen series of bonds which
approved their respective Extraordinary Resolutions who submitted valid and
timely participation instructions before the voting deadline are today being
distributed new securities through the clearing systems in connection with
settlement. Specifically, they are being distributed new sovereign notes
carrying a coupon of 7.75% and maturing between 2019 and 2027, as well as
GDP-linked securities, all as provided in the terms of the exchange offer.
Holders will receive their entitlements through the clearing systems and their
respective custodians in accordance with the procedures of such clearing
systems and custodians in due course.
Holders of the thirteen series of bonds which
approved their respective Extraordinary Resolutions who did not submit valid
and timely participation instructions before the voting deadline are not
receiving new securities today. Instead, such holders will have 150 days after
the settlement date to submit valid participation instructions in accordance
with the published terms of the exchange offer if they wish to receive their
entitlement to new Ukrainian securities. Any holders who have not submitted
valid participation instructions within such period will lose their entitlement
to receive the new securities. Instead the securities to which they would
otherwise have been entitled will be sold in the market and the cash proceeds
of sale (net of selling expenses) will be distributed to such holders through
the clearing systems.
Only one series of eligible debt instruments
did not participate in the exchange offer, being the Eurobond maturing in
December 2015. The terms of the new sovereign notes issued today include
contractual provisions which prevent