Ukraine Wins Prestigious IFR Awards 2022 in Financing Package and EMEA Restructuring Category

Ukraine received the IFR Awards 2022 in the category Financing Package and EMEA Restructuring from International Financing Review - an analytical and news portal in the field of capital markets and investment banking, which is part of the Refinitiv group.

The full-scale Russian invasion of Ukraine was a shock to the economy and public finances. The increase in the deficit of the state budget to USD 5 billion per month in order to cover the urgent needs of the state during martial law and the rapid reduction of international reserves forced the Ministry of Finance of Ukraine to conduct an operation to manage the state debt. The Ministry of Finance managed to agree with investors on a proposal to postpone payments on all sovereign and state-guaranteed Eurobonds for a total amount of about USD 21.1 billion. Investors supported the Eurobonds proposal without a consent fee, which is a customary condition for such transactions.

Investors' vote for the amendments is evidence of a desire to support Ukraine and reduce the potential negative effect of these instruments on Ukraine's economy during post-war growth. As a result, Ukraine received much-needed assistance, thanks to which the state saved about USD 6 billion over two years.

“We are grateful to the IRF for recognizing the success of the public debt management transaction that the Ministry of Finance conducted with its advisors last summer. We aim to continue public debt management of high quality, ensuring financial stability in Ukraine and transparent communications with investors. This is not the first award we have received based on the results of this transaction, but it is a very important recognition that motivates us in these difficult times,” – commented Yuriy Butsa, Government Commissioner for Public Debt Management.

Debt suspension was also approved for the two state-owned companies - Ukravtodor and Ukrenergo, which have state-guaranteed bonds. Companies are not required to pay out debt in foreign currency until 2024. The state company Ukrzaliznytsia also entered into an agreement to defer payments for two years on Eurobonds in the amount of USD 895 million with the support of the Government and the Ministry of Finance of Ukraine.

We will remind that the Ministry of Finance of Ukraine became the winner of the Risk Awards 2023 in the nomination Sovereign Asset Risk Manager of the Year from the international authoritative publication Risk.net. This was facilitated by the effective work of the Ministry of Finance team in the field of public debt management and continued active cooperation with investors in Ukrainian assets in the conditions of a full-scale war.