Oschadbank / Photo from UNIAN
Ukraine's state-owned Oschadbank said on Monday it had reached an agreement with creditors to extend maturities on debt amounting to $1.3 billion, as part of Ukraine’s effort to fill a $15 billion funding gap.
The bank's two outstanding eurobonds maturing in 2016 and 2018 and a subordinated loan maturing in 2017 are included in a package of sovereign and state-guaranteed debt which Kiev intends to restructure under an IMF-led bailout programme, Reuters reported.
The head of the Oschadbank's management board Andriy Pyshny stated over 90 percent of creditors had agreed to the restructuring terms, according to the report.
Under the deal, both eurobonds will be swapped for new notes with maturity extensions of seven years and a coupon increase to 9.375% from 8.25% on the 2016 notes, and to 9.625% from 8.875% on the 2018 bonds.
Neither Oschadbank, nor state-owned Ukreximbank have sought a principal or coupon reduction in restructuring talks.
Ukraine's negotiations with holders of its sovereign debt have dragged on for several months due to disagreements over the necessity of principal cuts.
On Friday, a source familiar with the situation said Ukraine sees the end of this week as the "absolute last deadline" to reach a deal with a group of its largest creditors, to avoid imposing a moratorium on foreign debt payments.