Ukraine announces liability management transactions on its Eurobonds and GDP-linked securities

russian invasion of Ukraine poses extraordinary risks to Ukraine’s economic, financial and social fabric and to its territorial integrity. The disruption to fiscal cash flows and increased demands on government resources caused by the war has created unprecedented liquidity pressures and debt servicing difficulties for the Government. Monthly fiscal gap is amounted to USD 5b.

Thus, Ukraine invited investors of Ukraine’s government Eurobonds and warrants to approve amendments to the conditions of the respective obligations issued on the external market. Ukraine’s initiative complements the announced intention of international partners of Ukraine within the G7 and the Paris Club to suspend debt service payment for Ukraine till the end of 2023 with the possibility to extend the suspension by one more year.

The Group of Creditors acknowledged Ukraine’s exemplary track record of honoring its debt service obligations to date. The Group of Creditors also expressed their support for the consent solicitations relating to Ukraine’s outstanding Eurobonds and GDP-linked warrant, and strongly encouraged bondholders and warrantholders to consent to Ukraine’s requests. Ahead of the Launch Date, Ukraine has discussed its liability management plans and needs with a select group of major and representative holders of both its Eurobonds and GDP-linked securities, including Amia Capital, BlackRock, Fidelity International (FIL) and Gemsstock, among others. Pursuant to these discussions, Ukraine has received explicit indications of support for the proposals with respect to both its Eurobonds as well as GDP-linked securities from the aforementioned group of holders.

Since February 24, Ukraine has continued to honor its debt obligations as a responsible issuer in the international capital markets, notwithstanding the brutal security, humanitarian, economic and financial damage to Ukraine inflicted by the Russian war of aggression. Background note: The Group of Creditors of Ukraine includes Canada, France, Germany, Japan, the United Kingdom, and the United States of America. Observers to the Group include Australia, Austria, Belgium, Brazil, Denmark, Finland, Ireland, Israel, Italy, Korea, the Netherlands, Norway, , Spain, Sweden, and Switzerland.

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