Ukraine set to extend 2015 eurobonds restructuring proposal until Dec 16
Kyiv’s proposal over the restructuring of $250 million eurobonds maturing in 2015 has been backed by 57.07% of the security holders.
Kyiv intends to extend the deadline for applications for securities conversion until December 16, the issuer said in a statement.
As reported, the holders of Kyiv eurobonds worth $300 million maturing in 2016 at a meeting on December 8 supported the proposal on the exchange of the securities for Ukrainian sovereign eurobonds maturing in 2019-2020 and state derivatives.
Some 91.82% of the bond holders participated in the meeting, of whom 99% voted in support of restructuring.
Unlike the said issue, the mechanism of restructuring the Ukrainian capital’s $250 million eurobonds did not involve conducting a holders’ meeting. The eurobond owners were to apply for conversion before December 8. The securities, for which no swap application has been filed, will remain in circulation. The yield on them will not be paid, however, because of a moratorium introduced by Kyiv on external debt repayments.
Kyiv’s eurobonds are included in the perimeter of a debt operation stipulated in the Extended Fund Facility (EFF) program of the International Monetary Fund. At issue are two eurobond issues: $250 million, in circulation till November 6, 2015, with a coupon rate at 8% per annum; and $300 million, in circulation till July 11, 2016, with a coupon rate at 9.375% per annum.