Sayenko Kharenko advised on landmark USD 22.5 billion consent solicitation by Ukraine
Sayenko Kharenko acted as Ukrainian legal counsel to J.P. Morgan, the solicitation agent in connection with the consent solicitation for 13 series of Ukraine’s outstanding Eurobonds (amounting to approximately USD 19.5 billion of the sovereign’s debt) and separate consent solicitation in relation to approximately USD 3 billion GDP-linked securities issued by Ukraine in 2015.
The successful liability management exercise was primarily focused on the extension of the notes’ maturity and introduction of coupon deferral mechanics, allowing Ukraine to postpone servicing its debt until 2024. According to the government of Ukraine, over the next two years, this will enable the country to save around USD 5 billion and reroute this money to more pressing needs such as social security and defence expenditures.
The deal received unprecedented support from a group of creditors of Ukraine within the G7 and the Paris Club that committed to providing a coordinated suspension of debt service to Ukraine. Notably, such group of official creditors announced that “By agreeing to the requested amendments of Ukraine’s outstanding securities, private sector investors would be providing a substantive demonstration of support for the government and people of Ukraine.“
Sayenko Kharenko’s partner and CEO Nazar Chernyavsky comments: “We are extremely proud to be involved in this landmark transaction that allows Ukraine to gradually reinforce the resilience of its debt profile. The support of public creditors and investors on this deal is paramount for the recovery of Ukrainian economy.”