Ministry of Finance statement on the outcome of the votes on the series of sovereign and sovereign guaranteed bonds

The Ministry of Finance is pleased to announce that on 14 October 2015 all sovereign and sovereign guaranteed bonds, with the exception of the December 2015 USD3bn bond, passed an Extraordinary Resolution approving the proposed restructuring.

Settlement of the exchange offer for the 13 series of bonds which yesterday approved their respective Extraordinary Resolutions would result in the restructuring of c.US$15bn of Ukraine’s external debt, achieve a 20% debt reduction for Ukraine (c.US$3bn) and allow Ukraine to avoid paying any of the previously scheduled US$8.5bn of principal falling due under such bonds during the next four years.

This success represents the outcome of seven months of intensive work of all Ukrainian authorities, coordinated by the Ministry of Finance, to convince Ukraine's bondholders of the necessity of a debt restructuring. All Ukraine’s partners supported the debt restructuring.

An adjourned bondholder meeting will be held in London on 29 October 2015 in relation to the December 2015 bond as the quorum was not reached at the initial meeting held today. At this meeting the holders of this bond – today the only holdouts - will have a final opportunity to join all of Ukraine’s other external bondholders in supporting Ukraine’s debt restructuring.

As provided in the Exchange Offer Memorandum of the debt operation, a final decision on settlement of the entire exchange operation will be taken by the Ministry of Finance immediately following the adjourned meeting.  If the decision is taken to proceed, it is anticipated that settlement will occur and new securities will be delivered to bondholders mid November 2015.