Ukraine set to extend 2015 Eurobond restructuring proposal until Dec 16
KYIV. Dec 8 (Interfax) - Kyiv's proposal over the restructuring of $250 million Eurobonds maturing in 2015 has been backed by 57.07% of the security holders.
Kyiv intends to extend the deadline for applications for securities conversion until December 16, the issuer said in a statement.
There were reports of a meeting on December 8 by the holders of Kyiv's $300-million Eurobonds maturing in 2016, which backed the issuer's proposal to swap their securities with Ukraine's sovereign Eurobonds maturing in 2019-2020 and state derivatives.
The meeting was attended by holders of 91.82% of the bonds, 99% of whom voted for restructuring.
Unlike said issue, the mechanism of restructuring the Ukrainian capital's $250-million Eurobonds did not involve conducting a holders' meeting. The Eurobond owners were to apply for conversion before December 8. The securities, for which no swap application has been filed, will remain in circulation. The yield on them will not be paid, however, because of a moratorium introduced by Kyiv on external-debt repayments.
Kyiv's Eurobonds are included in the perimeter of a debt operation stipulated in an Extended Fund Facility (EFF) of the International Monetary Fund. At issue are two Eurobond issues: $250 million, in circulation till November 6, 2015, with a coupon rate at 8% per annum; and $300 million, in circulation till July 11, 2016, with a coupon rate at 9.375% per annum.