Next stage of debt restructuring: Cabinet of Ministers of Ukraine launches exchange offer to creditors for Ukraine's sovereign bonds and sovereign guaranteed bonds

The Cabinet of Ministers of Ukraine has published the terms of its exchange offer to holders of Ukraine's sovereign bonds and sovereign guaranteed bonds, the details of which can be found in the Exchange Offer Memorandum ("EOM").

As per the terms agreed between the Government of Ukraine and the Ad Hoc Creditors' Committee on 27 August 2015, Ukraine's sovereign bonds and sovereign guaranteed bonds are to be exchanged for new sovereign bonds as well as sovereign GDP-linked securities to be issued by Ukraine.

The EOM also includes a letter of support from the Managing Director of the IMF, Christine Lagarde, requesting bondholders to accept Ukraine's exchange offer: "Active participation of all holders of Ukrainian Eurobonds in the debt restructuring deal is crucial, since Ukraine is missing funds under the mentioned programme to serve its debts on the current terms. Jointly with the Government of Ukraine and the Special creditors’ committee I am asking all creditors to accept the debt restructuring offer of Ukraine".

Minister of Finance, Natalie Jaresko also said: "The support of all holders of Ukrainian Eurobonds for our exchange offer will enable us to complete the debt restructuring deal achieved in the end of August with our biggest creditors. As the President of Ukraine and the Prime Minister of Ukraine pointed out and as clearly stated in the documents, no single creditor is going to receive terms more favorable than those offered by us now".

Bondholder meetings for each series of bonds to approve the exchange offer will be held in London on 14 October 2015.

The electronic voting deadline to cast votes for the 14 October 2015 bondholder meetings is 12 October 2015 starting from 10:00 am GMT.

Should the necessary quorum and sufficient majority be reached at the 14 October 2015 bondholder meetings, completion of the exchange offer is expected by 27 October 2015.

A downloadable copy of the EOM can be found at http://sites.dfkingltd.com/ukraine