Ukraine completes restructuring of Eurobonds, public debt reduced by $9 billion

Ukraine has announced the successful completion of the debt restructuring operation and settlement of 13 series of government Eurobonds and government-guaranteed Eurobonds issued by Ukravtodor. This is stated in the message of the Ministry of Finance.

The restructuring process included the exchange of 13 series of government Eurobonds and one series of government-guaranteed Eurobonds of Ukravtodor for about $20.5 billion (approximately $24 billion including capitalized interest) for eight new series of Eurobonds with a par value of $15.2 billion.

“As a result of this transaction, Ukraine’s public and publicly guaranteed debt has been reduced by about $9 billion. This means a nominal reduction in the cost of debt by 37% from the first day of the transaction and a reduction in the net present value of debt by about 60% (at a discount rate of 14%). This is one of the largest debt write-offs in recent sovereign debt restructurings,” the Ministry of Finance noted.

Debt payments are reduced by 93%, which will result in savings of $11.4 billion over the next three years. In addition, debt service and repayment costs will be reduced by 77% by 2033, which will save a total of $22.8 billion.