Ukraine agreed to a debt restructuring with its Eurobond holders.

As Prime Minister Denys Shmyhal reported, Ukraine has reached fundamental agreements with a committee of Eurobond owners. This is a crucial stage in Ukraine’s debt restructuring, saving $11.4B in servicing over the next three years and $22.75B by 2033.

The committee of bondholders accepted nominal losses of 37% of their holdings across 13 notes, forgoing $8.67B in claims and a decrease in the net present value of the debt by approximately 60%.

The Ministry of Finance reported that the first $1.172B repayment will occur in 2029. By comparison, without the restructuring the principal amount of $9.381B (excluding capitalized interest) would have been due between 2024 and 2029.

At the same time, the value of Ukrainian Eurobonds on Western stock exchanges increased by 13-20% after the government announced that it had reached an agreement with creditors on restructuring its debt. According to the ICU Group, the biggest growth was captured in long bonds maturing in 2031 and 2035 with their value increased by 18.88% and 19.77%, respectively.