GCU supports Ukraine’s Eurobond restructuring deal

The Group of Creditors of Ukraine (GCU) welcomed the preliminary agreement Ukraine reached with a committee of bondholders to restructure its Eurobond debt, as reported by Ukrainian media on Monday.

The deal, confirmed by the International Monetary Fund (IMF) as aligning with Ukraine’s debt sustainability goals, involves a debt write-off of 37 per cent with a potential 12 per cent restoration based on future GDP performance.

The GCU, which includes Canada, France, Germany, Japan, the UK, and the US, has urged Eurobond holders to swiftly accept Ukraine’s offer to exchange old bonds for new ones. This exchange, officially announced on August 9, aims to provide significant debt relief and demonstrate support for Ukraine.

Ukraine’s restructuring plan includes issuing new Eurobonds maturing between 2029 and 2036, with yields rising from 1.75 per cent to 7.75 per cent over time. The offer requires bondholder consent by August 27, with results announced on August 28 and settlements completed by September 4.

Approval hinges on securing consent from two-thirds of bondholders and at least half of each issue’s holders, provided fewer than 25 per cent oppose.

Attribution: Interfax

Sub-Editing: Y.Yasser