Kyiv city approves restructuring $101 mln unsettled eurobonds
Kyiv City Council on November 21, 2017 approved the restructuring of $101.149 million eurobonds. The decision has been published in the Khreschatyk newspaper.
The restructuring conditions include interest rate of no more than 7.5% per annum and the amortization schedule: the principal of the debt will be paid in four equal tranches on June 15, 2021, December 15, 2021, June 15, 2022 and December 15, 2022.
The coupon will be accrued and paid once in six months.
The coupon that will be accrued in the period of a moratorium on servicing of securities will be capitalized and added to the principal of the debt.
According to the decision of Kyiv City Council, negotiations on restructuring of securities were held in 2016-2017. At present, it has been preliminary arranged to complete the restructuring of the remainder of local debt. These are eurobonds issued in 2005 for the amount of $250 million that were to mature on November 6, 2015 (8% per annum). As part of the debt transaction conducted by Ukraine in 2015, 59.51% of the eurobonds were restructured.
The restructuring mechanism for$250 million eurobonds provided that the securities that were not restructured will remain outstanding over a moratorium on making payments on foreign debts introduced by Kyiv.
In addition, Kyiv in 2011 issued $300 million eurobonds with maturity until July 11, 2016 and a coupon rate of 9.375% per annum. These securities were also included in the sovereign debt transaction, which resulted in the restructuring of 90.9% of securities.