REFILE-UPDATE 1-Ukraine creditor group reveals members, repeats objection …
(Refiles to remove extraneous word in first paragraph)
KYIV May 18 (Reuters) – A group of major holders of
Ukrainian sovereign debt gave up their anonymity on Monday,
appearing to respond to accusations they lacked transparency in
restructuring talks where they are opposing a cut in the
face-value of the bonds.
Negotiations to restructure some $23 billion worth of
Ukrainian debt have soured in the past week after the creditor
group repeated objections to any writedown on the principal owed
and Kyiv said that stance lacked “good faith”.
Ukraine’s side of the argument has since been bolstered by
comments from former U.S. Treasury Secretary Lawrence Summers,
who accused the group of being “selfish” and criticised it for
not disclosing its membership apart from largest bondholder
Franklin Templeton.
In an emailed statement, the committee revealed all the
funds it represents and repeated objections to any ‘hair-cut.’
It said the creditor committee comprised funds managed or
advised by BTG Pactual Europe, Franklin Advisers, TCW Investment
Management Company and T. Rowe Price Associates, which hold
approximately $8.9 billion of Ukrainian debt.
“The Committee and their advisers are in regular contact
with additional holders of the Notes who, together with the
Committee, represent in excess of $10 billion of Ukrainian
debt,” it added.
The deal put forward by Kyiv foresees extending the maturity
of the bonds and reducing the principal and the coupon.
On Friday, Finance Minister Natalia Yaresko appealed to
bondholders to be constructive and said face-to-face talks were
needed in the “very near future”.
The group said it was pleased Ukraine wanted to accelerate
negotiations. “The Committee sees no reason why substantive
discussions on this important issue should not commence
immediately.”
The dollar-denominated 2023 issue gained 0.25 cents to
change hands at 48 cents in the dollar.
The cost of insuring exposure to Ukrainian debt through
5-year credit default swaps has risen to 3239 basis points from
the Friday close of 3127, according to data provider Markit.
(Reporting by Alessandra Prentice; Additional reporting by
Karin Strohecker; Editing by Robin Pomeroy)