Ukraine completes GDP warrant restructuring

MOSCOW. Dec 25 (Interfax) - Ukraine said on Wednesday it had completed the settlement of a deal to restructure GDP-linked warrants with 99.06% support from debtholders, Ukrainian media reported.

This transaction restores fiscal predictability, strengthened debt sustainability, and safeguards budget resources in current conditions, the Ukrainian Finance Ministry said in a statement on its website.

Under the terms of the restructuring deal, Ukraine converted its GDP warrants worth $2.635 billion into a new class of C notes due in 2032 in the amount of $3.498 billion, with a small number of warrants converted into further B notes due in 2030 and 2034 in the amount of $16.91 million each. All GDP warrants were annulled.

This restructuring eliminated a significant contingent liability from Ukraine's public finances. The Finance Ministry estimates that without this transaction, payments on GDP warrants in 2025-2041 could have stood at $6 billion to $20 billion, depending on economic growth rates in Ukraine.

The restructuring deal helps Ukraine meet its debt sustainability goals under the International Monetary Fund program and is in line with the expectations of the Group of Creditors of Ukraine.

White & Case LLP was the Ukrainian Finance Ministry's legal advisor in the deal, while Rothschild & Co was its financial advisor.