Ukraine has made a $201 million payment to holders of its GDP warrants, securities linked to the country's economic performance, that weren’t part of a $20-billion eurobond restructuring agreement with private creditors announced early this week, Bloomberg News reported, citing unnamed sources.
The payment eases concerns after President Volodomyr Zelensky signed into law a bill on July 31 that would let the government defer payments on foreign debt until October.
The payment, on $2.6-billion of outstanding warrants, included a consent fee and interest of $130.1 million plus $70.5-million to cover a deferred payment and interest from 2021.
The warrants, issued during a debt overhaul in 2015, have disbursements linked to Ukraine’s economic performance. They were excluded from a $20-billion bond restructuring agreement reached in principle early this week between holders of Ukraine’s international bonds and the government.
The government reached the agreement, which marks the first-ever full-scale debt restructuring carried out amid a full-scale war, with investors controlling 22% of the bonds, and investors with an additional 3% also indicating they will support the deal.
Under the terms, the government achieved a 37% haircut on the nominal amount of the bonds. It will now issue two series of bonds to replace the existing ones, including one maturing between 2029 and 2036 and a series maturing in 2030-2036. Some of the bonds would pay a 1.75% coupon starting in 2025, and as much as 7.75% starting from 2034.
