14:2302.03.2016

Ukraine pays first coupon on restructured eurobonds

Ukraine has paid the first coupon on eurobonds issued as part of the debt restructuring transaction, sources told Interfax-Ukraine on Wednesday.

One of the sources said that the Finance Ministry of Ukraine has drawn up all the documents required for the payment several days before settling the payment.

Another source confirmed that funds have arrived to the accounts of bondholders. The source also said that the total sum paid was $487.73 million.

As reported, in October 2015, following negotiations lasting for about half a year, the holders of 13 out of the 14 issues of Ukrainian eurobonds worth in total $14.36 billion and EUR 600 million supported Ukraine's restructuring terms.

Ukraine only failed to reach a restructuring agreement on the eurobonds bought by Russia, which it financed from the National Welfare Fund at the end of 2013. Russia refused to discuss restructuring on general terms, insisting that the debt was sovereign rather than commercial.

Initially, as part of restructuring of foreign bonds the issue of 2019 eurobonds was worth $1.155 billion, government warrants worth $2.916 billion, although the sums were increased due to the restructuring and exchange of bonds issued by Kyiv city and government secured loans.

2020 bonds worth 41.707 billion were issued, as well as 2021 bonds worth $1.378 billion, 2022 bonds worth $1.355 billion, 2023 bonds worth 41.33 billion, 2024 bonds worth $1.315 billion, 2025 bonds worth $1.306 billion, 2026 bonds worth $1.295 billion and 2027 bonds worth $1.286 billion.

The interest rate for all bonds is 7.75% per annum and the coupon is paid twice a year – on March 1 and September 1, starting from March 1, 2016.