The Kyiv City State Administration proposed conducting December 8 negotiations to holders of five-year notes worth $300 million maturing in 2016 to discuss restructuring of the debt, included in the perimeter of Ukraine's debt operation, which terms were agreed with the International Monetary Fund (IMF) and the ad hoc creditors' committee, and finalized in August this year, according to a posting on the website of the Irish Stock Exchange.
The meeting is planned to be held in London at the office of White & Case company, according to the report.
As reported, the note holders will be offered to exchange their notes for U.S. dollar denominated 7.75% sovereign securities maturing in 2019 and 2020. For each $1,000 in notes held, each noteholder will be entitled to receive sovereign notes with a principal amount equal, subject to rounding, to the sum of $375 and 50% of the accrued interest on such $1,000 of notes held; dollar denominated GDP-linked securities having a notional amount of $220.
Read alsoFitch upgrades Ukraine's long-term foreign currency issuer default rating"In addition, each noteholder who votes in favour of the Extraordinary Resolution by way of a valid submission of a Participation Instruction will receive a consent incentive, consisting of additional U.S. dollar denominated GDP-linked securities having a notional amount of $30 for each $1,000 in notes held," a statement reads.
As UNIAN reported earlier, Ukraine and the creditors' committee reached an agreement on the restructuring of public debt, totaling $8 billion on August 27. A meeting was held with the holders of the Ukrainian eurobonds on October 14 in London, where more than 75% of the holders agreed to the restructuring terms.
On November 11, the Cabinet of Ministers approved the terms of the issue of new eurobonds and derivatives to finalize the ongoing state debt restructuring process.
Read alsoMoody's upgrades Ukraine's sovereign rating to Caa3, outlook stableKyiv municipal debt was included in the perimeter of the restructuring operation, providing partial write-off and exchange for new securities under two issues of municipal notes worth $250 million maturing in November 2015 and $300 million maturing in July 2016.
On November 6, the city authorities announced a temporary moratorium on the city's external debt payments.