Sayenko Kharenko acted as Ukrainian legal counsel on the final restructuring of sovereign-guaranteed debt of Ukravtodor

02.06.2016

Sayenko Kharenko acted as Ukrainian legal counsel to VTB Capital in the restructuring of a sovereign-guaranteed loan by VTB Capital to the State Road Agency of Ukraine (Ukravtodor) with an outstanding principal amount of USD 100.8 million.

Similarly to restructuring transactions of Ukravtodor completed earlier this year, the loan has been converted into sovereign Eurobonds and GDP-linked securities with 75 per cent of the outstanding loan amount exchanged for Ukraine’s 7.75 per cent senior notes due 2019, and 25 per cent of the outstanding loan amount exchanged for Ukraine’s GDP-linked securities.

Being the final step in restructuring of the sovereign guaranteed debt, this transaction represents one of the series of successful restructuring exercises conducted in accordance with the requirements of the IMF’s Extended Fund Facility. According to the Ministry of Finance, Ukravtodor deal allowed Ukraine to reduce its debt burden, which shall contribute to the macroeconomic stability and economic recovery.

Sayenko Kharenko team advising on the transaction included counsel Anton Korobeynikov and associate Taras Shyb, and was led by partner Nazar Chernyavsky