Repayment and servicing of the securities will be effected at the expense of budget funds / Photo from UNIAN
New eurobonds will be issued in nine separate series at a single interest rate of 7.75% per annum, according to Ukraine's Cabinet.
The Cabinet of Ministers has approved the terms of the issue of new eurobonds and derivatives to finalize the ongoing state debt restructuring process. The terms are stipulated in Cabinet resolution No. 912 posted on the government's website.
The so-called "Russian" bonds, which were issued in December 2013 and are falling due in 2015, were not included into the list of the restructured eurobonds that are subject to exchange for the new bonds.
According to the Cabinet, the new eurobonds will be issued in nine separate series to different amounts, but at a single interest rate set at 7.75% per annum. The derivatives will be issued to a conditional amount of $2.9 billion, and payments on them will be effected only if Ukraine achieves certain positive macroeconomic indicators.
The maturity of the new eurobonds is set for September 1, 2019-2027. The face value of one bond is $100,000. An interest rate set at 7.75% shall be calculated as of September 1, 2015, and paid twice a year on March 1 and September 1, starting from September 1, 2016.
Repayment and servicing of the securities will be effected at the expense of budget funds.
"The old bonds that were not included into the swap because their holders had not given the necessary orders shall be considered invalid. Rights of such holders to receive new bonds and state derivatives within 150 days shall be confirmed by entries in the clearing system. Upon the expiration of the 150-day period, if the necessary orders have not been given, the holders of the old papers will lose their right to receive the additional government bonds or derivatives," the Cabinet said.
As the Cabinet decided, each derivative shall be issued to a notional amount of $1,000. Payments on the derivatives shall be made in U.S. dollars. The amount payable is calculated according to a formula due to be approved by the government. At the same time, in 2019-2023, the total amount of payments on the derivatives cannot exceed 1% of Ukraine's GDP. Payments shall be made every second year on May 31. The first payment date for the 2019 derivatives is scheduled for May 31, 2021. The final date of the payments is slated for May 31, 2040, unless other decisions to change the date of the payment have been taken.