Ukraine reaches agreement on restructuring GDP warrants with their holders
On December 1, Ukraine proposed to the holders of GDP warrants, totaling $2.59 billion, to exchange them at a ratio of 1.34 for new amortized Ukrainian Eurobonds (rfkce C) with a maturity date between 2030 and 2032. Ukraine also offered a cash reward of up to 7% for the exchange. In the following days, the special committee of the GDP warrant holders agreed to the proposal, on the condition that they would recover their losses.
On Tuesday, Ukraine's stock exchange announced that Ukraine and the members of the Special Committee had reached an agreement on the terms of the offer and the terms of the new securities. The Special Committee confirmed its support for the amended and restated offer.
According to the statement, these changes were also discussed with GDP warrant holders outside the Special Committee.
The updated proposal states that the new securities will benefit from the "Loss Recovery Amount" provision, which provides for the immediate payment of bonds at the stated recovery amount when certain conditions are met.
These conditions include nonpayment of principal or interest on eurobond C, a moratorium on it, and its inclusion in the restructuring of other eurobonds.
At the same time, to maintain constructive, long-term relations with holders of Class A and B eurobonds issued on August 30, 2024, during the Eurobond restructuring, Ukraine will conduct a survey regarding this condition.
In connection with these changes, Ukraine extended the early exchange offer period, during which holders of GDP warrants will receive the largest cash consideration, from December 12 to December 15. Other conditions remain unchanged.