The Ministry of Finance of Ukraine supports the exchange
offer made by the City of Kyiv for its 2015 and 2016 Eurobonds representing a
total of US$550 million.
Participating holders of those bonds will receive, after a
25% haircut, in equal parts, two sovereign bonds maturing in 2019 and 2020 with
a 7.75% coupon and GDP growth-linked warrants for 25% of the nominal, which are
fungible with warrants issued for the sovereign operation.
This exchange is enabled through specific provisions in the
2015 Ukrainian budget law. Therefore, it represents a time limited opportunity
for City of Kyiv note holders.