12:52 10.09.2018

Kyiv completes restructuring $101.15 mln worth of '15 eurobonds

3 min read
Kyiv completes restructuring $101.15 mln worth of '15 eurobonds

 Kyiv City Council on September 4 completed the restructuring of its outstanding foreign debt by exchanging eurobonds with a yield of 8% and maturing in 2015 (2015 eurobonds) with a total nominal value of $101.149 million for new loan participation notes (LPN) falling due on December 15, 2022, with a yield of 7.5%, the city administration's press service said, citing First Deputy Head of Kyiv State City Administration Mykola Povoroznyk.

"To date, Kyiv City Council has no outstanding debt on external borrowing, he said.

According to him, the notes maturing in 2022 are included in the official register of the Irish Stock Exchange.

According to the exchange, Kyiv's new LPNs were issued through PRB Kyiv Finance Plc for a total nominal amount of $115.072 million. The coupon on them is paid semi-annually, the next payment is scheduled for December 15, 2018.

According to a press release of the Kyiv City Council on the exchange, the exclusive financial advisor was Lazard and White & Case and Avellum acted as legal advisors.

As was reported, Kyiv's 2015 eurobonds were included in the perimeter of the debt operation envisaged by the International Monetary Fund's Extended Fund Facility (EFF). They included two issues of eurobonds: 10-year $250-million eurobonds maturing on November 6, 2015, with a coupon rate of 8% per annum and five-year $300-million eurobonds maturing on July 11, 2016 ,with a coupon rate of 9.375% per annum.

On November 23, 2015, Kyiv offered bondholders to exchange its eurobonds for sovereign eurobonds of Ukraine falling due in 2019-2020 and state derivative securities. In keeping with the offer, one bond with a nominal value of $1,000 was to be swapped for two sovereign eurobonds maturing in 2019 and 2020 whose face value is $375 each and a rate of 7.75% per annum and state derivatives with a conditional value of $250. Interest accrued on the bonds was to be capitalized and added to the principal amount of new bonds.

As part of a debt restructuring operation, the government of Ukraine on December 18, 2015, allowed the conversion of Kyiv's debt on 2015 eurobonds worth $117.394 million and 2016 eurobonds worth $233.672 million into state debt.

The restructuring of the 2015 eurobonds was backed by 59.51% of their holders, and that of 2016 eurobonds - by 90.9%. According to a source of Bloomberg, the 2015 eurobond offer was rejected by London-based Franklin Templeton Inv Mgmt Ltd., which held 32% of 2015 eurobonds. After that, according to available information, negotiations were held with that creditor.

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