The Ministry of Finance of Ukraine supports the Kyiv proposal on bond swapping with repayment in 2015 and 2016 for the total amount of USD 550 mln, the ministry press-service reports.
The owners of such euro bonds will participate in swapping and will receive two new issues of sovereign bonds with repayment in 2019 and 2020 after writing-off of 25% of nominal value of such euro bonds.
The income on new sovereign bonds will make up 7.75%. In addition, public derivatives are also proposed to the lenders in exchange for writing-off in the amount of 25% of the nominal value of euro bonds. Such securities will be identical with those, which were issued during sovereign transaction.
This swapping is possible in compliance with the provisions of the Law of Ukraine “On State Budget of Ukraine for 2015”. Thus, this proposal for euro bond holders of Kyiv is limited in time.
The Ministry of Finance of Ukraine urges all Kyiv euro bond owners to accept the specified swapping proposal.
