Ukraine announces exchange of $2.6 bln GDP-warrants for 2032 eurobonds with coefficient of 1.34
Ukraine is offering holders of GDP warrants, issued at a nominal value of $2.6 billion, the opportunity to exchange them at a ratio of 1.34 for Ukraine’s new amortized eurobonds B, which mature between 2030 and 2032. Ukraine will also pay a cash reward of up to 7% for such an exchange, according to the offer on the Irish Stock Exchange and the Cabinet of Ministers Resolution No. 1554 of December 1.
The basic terms stipulate that 45% of the principal amount of the new eurobonds B will be redeemed on February 1, 2030, and February 1, 2031, while the remaining 10% will be redeemed on February 1, 2032.
The coupon rate on these bonds will be 4% per annum from issuance until February 1, 2027; then 5.5% until August 1, 2029; and 7.25% annually for the remaining period until maturity.
Holders of GDP warrants who agree to the exchange during the early-consent period — until and including December 12 — will receive an additional cash incentive of 7% ($70 for every $1,000 of nominal GDP warrants). Those who agree between December 13 and 17 inclusive will receive 4.5%.
Finally, those who do not participate in the exchange — if it is approved — will receive, with a total coefficient of 1.36, other eurobonds: the eurobonds B issued during the 2024 restructuring. They will receive 0.68 of the eurobonds maturing in 2030 and 0.68 of the eurobonds maturing in 2034. These carry a zero coupon until February 1, 2027; 3% until August 1, 2033; and 7.75% annually thereafter.
It is noted that the quorum for approving the decision is 75% of the total nominal amount, and the decision is expected on December 22.
At the same time, even with consent from 50% of GDP warrant holders, Ukraine may initiate their delisting from the exchange.
According to the Frankfurt Stock Exchange, GDP warrants rose 0.66% on Monday to 92.15% of nominal value. They last traded higher in October 2021, before the war, after which their price at times fell below 20% of nominal.