Ukraine Bonds Have Best Month on Record as Writedown Seen Small

Ukraine’s Eurobonds rallied, on course for their biggest monthly gain on record, as details of a new creditor proposal fueled optimism that bondholders won’t have to accept big losses in a $19 billion debt restructuring.

The notes traded near 60 cents on the dollar for the first time since February, a month before Ukraine started warning its investors that they would have to accept writedowns on their principal holdings. A creditor committee led by Franklin Templeton submitted a proposal to Ukraine this week that includes a 5 percent so-called haircut, a person familiar with the negotiations said on Thursday.