The government of Ukraine intends to extend the maturity of all Eurobonds by 24 months, as well as to defer the payment of interest income on them for the same period, the relevant Cabinet of Ministers Resolution No. 805 of July 19 was published on its website on Wednesday.
“Transactions with public debt in 2022 are carried out until August 15, 2022 by entering into the terms of the bond issue … in agreement with the bond holders …”, the document says.
According to it, “the maturity date of each bond (and for 2017 bonds ⸺ each maturity date of a portion of the 2017 bonds) is deferred for a period of 24 months from the respective final maturity date of the bonds.”
“All interest payment dates on post-deal bonds are deferred for a period of 24 months from each relevant interest payment date (and for 2018 Series 1 bonds ⸺ all interest payment dates on these bonds are deferred for a period from August 1, 2022 d.),” the resolution reads.
During these 24 months, interest income on the bonds continues to accrue at existing rates, and additional interest income is accrued on the amount of accrued basic interest income at the same rates.
“At any time during the specified delay, the total amount of accrued basic interest income and additional interest income (the amount of income of holders) on the basis of a separate decision of the Cabinet of Ministers of Ukraine may be paid to bondholders in part (or) in full,” the document says.
Likewise, at the end of the said deferral, the unpaid amount of the holders’ income at that time may be paid to the holders in full or by additional issue of the relevant bonds.
“The amount of income of holders is calculated by the Ministry of Finance, taking into account, in particular, information provided by business entities engaged by the Ministry of Finance to provide agency, advisory or other services in connection with transactions, and cannot exceed $ 3,000 million (together for all bonds paid in dollars USA) and 300 million euros (jointly for all paid in euros),” the resolution says.
