Sayenko Kharenko Advises Ad Hoc Committee of Bondholders on Restructuring of Ukraine’s USD 20.5 billion Sovereign and Sovereign-Guaranteed Eurobonds

Sayenko Kharenko acted as Ukrainian legal counsel to the ad hoc committee of bondholders in the successful restructuring of thirteen series of Ukraine’s sovereign Eurobonds and sovereign-guaranteed Eurobonds issued by Ukravtodor. The total restructured debt involved approximately USD 20.5 billion of outstanding principal and, with accrued interest, totalled close to USD 24 billion. 

The transaction involved exchanging the existing sovereign and sovereign-guaranteed notes into eight new series of Step Up A Notes and Step Up B Notes issued by Ukraine, with an aggregate principal amount of USD 15.2 billion. Key features of the restructuring also included a potential principal increase condition linked to Ukraine’s economic performance in 2028, as well as a loss reinstatement provision that would protect bondholders in the event of a future restructuring triggered by comparability of treatment considerations with official sector claims. 

According to the Ministry of Finance of Ukraine, this restructuring significantly reduces immediate debt servicing payments by 93%, resulting in savings of USD 11.4 billion over the next three years. Furthermore, debt servicing costs through 2033 will be reduced by approximately 77%, generating total savings of USD 22.8 billion. 

“We are proud to have played a role in this landmark restructuring, working alongside the parties to achieve a successful outcome. We are also grateful for the noteholders’ unwavering support and commitment to maintaining Ukraine’s economic stability during these challenging times,” says Anton Korobeynikov, the firm’s partner. 

Sayenko Kharenko team advising on this transaction included partners Anton Korobeynikov, Nazar Chernyavsky, Igor Lozenko, and senior associate Oles Trachuk.