Ukraine, Key Bondholders Reach Deal on $20 Billion Overhaul
- Creditor group agrees in principle on nominal losses of 37%
- Ukraine will continue talks with holders of GDP warrants
Photographer: Anatolii Stepanov/AFP/Getty Images
This article is for subscribers only.
Ukraine reached a deal in principle with some of its private creditors to restructure more than $20 billion of international debt, in a move that will help the country finance its fighting against Russia.
The nation’s debt traded at the highest in two years, showing investor optimism that the intial agreement will get a final go-ahead from stakeholders. The bondholders’ committee accepted nominal losses of 37% of their holdings across 13 notes, forgoing $8.67 billion of claims, according to a statement with the terms of the accord. Ukraine anticipates saving $11.4 billion in the next three years by a combination of lower coupons and maturity extensions.