Ukraine Bonds Surge on Better-Than-Expected Restructuring Deal
- Creditors agree 20% writedown, 4-year extension, 7.75% coupon
- Ukraine 2017 note jumps most on record to 65 cents on dollar
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Ukrainian bonds jumped the most on record after the government agreed to a softer restructuring deal than some analysts expected.
The nation’s $2.6 billion of notes maturing in July 2017 gained 15.4 cents to 70.93 cents on the dollar at 7:15 p.m. in Kiev. Ukraine and its creditors agreed to writedown the principal on $18 billion of Eurobonds by 20 percent, extend repayment dates by four years and set all coupons at 7.75 percent, the Finance Ministry said in a statement Thursday. The government was originally said to have sought a so-called haircut of 40 percent.