Ukraine $15 billion debt restructuring

Overview:

• The Government of Ukraine restructured $15 billion of its outstanding eurobonds after reaching an agreement with the majority of its creditors. 
• The terms of the deal saw bondholders accept a write-down of 20% and receive an increased coupon of 7.75%, an an additional four years on the bonds'maturities, and GDP linked warrants.  
• Taking effect between 2021 and 2040, the warrants give the holders a percentage of the country's GDP growth when it exceed certain thresholds. 
• The bonds included 10 government eurobonds and three Ukrainian state-guaranteed eurobonds.
• Ukraine has a $3 billion eurobond held by Russia which it failed to restructure as the Kremlin refused the terms of its offer. 
• Ukraine first committed to restructuring its eurobonds when it signed a $40 billion bail-out package from the International Monetary Fund (IMF) in March 2015. 

Ben Naylor - Regional editor