Cabinet orders issue of new eurobonds under restructuring
The Cabinet of Ministers of Ukraine has ordered the issue of new eurobonds and government derivatives as a part of the completion of restructuring of 11 issues of sovereign and three issues of government-secured eurobonds of Fininpro.
Resolution No. 912 of November 11, 2015 has been posted on the government’s website.
According to the document, new sovereign eurobonds with a face value of $100,000 are issued in nine series: the first series worth $1.155 billion due on September 1, 2019; second worth $1.531 billion due on September 1, 2020, third worth $1.378 billion due on September 1, 2021, fourth worth $1.355 billion due on September 1, 2022, fifth worth $1.33 billion due on September 1, 2023, sixth worth $1.315 billion due on September 1, 2024; seventh worth $1.306 billion due on September 1, 2025, eighth worth $1.295 billion due on September 1, 2026 and ninth worth $1.286 billion due on September 1, 2027.
The interest rate for all the securities is set at 7.75% per annum. The coupon is accrued and paid twice a year – on March 1 and September 1, starting from March 1, 2016.
All old sovereign eurobonds, apart from securities worth $3 billion due in December 2015, and securities of Fininpro are annulled and considered paid from November 12, 2015.
Investors who failed to exchange oil eurobonds to the new ones as of November 12, can exchange the securities during 150 days after November 12, 2015.
When the term expires, the holders of eurobonds will not be able to realize this right and all new eurobonds and government derivatives will be sold on the open market. The funds received from the sale of these securities will be proportionally distributed via the clearing system among holders of old bonds who did not exchange them.
Government derivatives are issued with a face value of $1,000. The initial sum of the issue is $2.916 billion.
Holders of the derivatives will be able to receive payments foreseen in the conditions of the issue, which depend on Ukraine’s GDP pace. Payments are settled in the U.S. dollars.
The date for paying out the derivatives is April 30, and payments will be settled on May 31. The first date of paying out and payments for 2019 is April 30 and May 31, 2021.
If the report of the International Monetary Fund (IMF) on the state and prospects of the global economy is not published earlier than April 30, the date of paying out will be revised so that it would be the last day of the calendar month when the report is published.
BNY Mellon Corporate Trustee Services Limited has been appointed trustee for all the securities.