Avellum Advises the Ministry of Finance of Ukraine on Restructuring of Ukravtodor’s Debt to VTB Capital and on Completion of the Sovereign Debt Restructuring

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Avellum Advises the Ministry of Finance of Ukraine on Restructuring of Ukravtodor’s Debt to VTB Capital and on Completion of the Sovereign Debt Restructuring

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PRESS RELEASE, Kiev, 24 May, 2016

Kiev, 24 Мay 2016 - Avellum acted as Ukrainian counsel to the Ministry of Finance of Ukraine (i) on the restructuring of state guaranteed loan from VTB Capital to Ukravtodor (“Ukravtodor Loan”) amounting to $100.8 million, and (ii) on the tap issue of Ukraine’s Notes and GDP-linked Securities to complete the sovereign debt restructuring.

Pursuant to the restructuring terms of the Ukravtodor Loan, the outstanding principal balance of this loan and accrued interest thereon were discharged in full, and this loan was terminated, in exchange for the delivery to the lender (i) $78,535,000 aggregate principal amount of Ukraine’s 7.75% Notes due 2019, representing 75% of the outstanding principal balance of the loan (plus accrued interest), and (ii) $25,200,000 aggregate notional amount of Ukraine’s GDP-linked Securities, representing the remaining 25% of the outstanding principal balance of the loan.

The restructuring of the Ukravtodor Loan is the final step in the restructuring of the sovereign-guaranteed debt.

In addition, in order to complete the technical issues of the sovereign debt restructuring, which was settled in November 2015, Ukraine issued additional nine series of Notes in the aggregate principal amount of $346,593,000 and GDP-linked Securities in the aggregate notional amount of $84,059,000.

Avellum team was led by Partner, Glib Bondar, with lead associates Artem Shyrkozhukhov and Taras Dmukhovskyy, and a team of lawyers, including Taras Stadniichuk, Anastasiya Voronova, Pavlo Shevchenko, and Orest Franchuk.

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