Ukraine completes restructuring of state-guaranteed debt

Ukraine’s Finance Ministry reported on April 27 it has restructured the latest state-guaranteed loan with VTB Capital, worth USD 100.8 mln. The guaranteed debt of infrastructure holding Ukravtodor will be exchanged into government Eurobonds (UKRAIN) maturing in September 2019 and Ukraine’s GDP warrants in the proportion of 75/25.

In other news, MinFin reported it issued an additional USD 430.6 mln in government Eurobonds, aiming to substitute the remainder of old Eurobonds to those who failed to exchange them before Nov. 12, 2015. Such bondholders had 150 days to apply for the exchange.

In this way, Ukraine has completed its debt operation, which resulted in the restructuring of USD 15.3 bln in government Eurobonds, USD 0.46 bln in Eurobonds of Kyiv city, and USD 0.51 bln in state-guaranteed debt, according to our estimates.

The holdouts of the debt operation are a Russian state fund, which holds USD 3 bln in sovereign Eurobonds (due in December 2015), and the holders of USD 0.1 bln in Kyiv city Eurobonds (due in November 2015).