Ukraine

Banks on Tuesday settled credit default swaps referencing the Republic of Ukraine at 80.625, the highest recovery on a sovereign credit event auction since they began in 2005.

A credit event auction on Tuesday for swaps referencing the Republic of Ukraine will be the fastest that has ever been put together in the history of the derivatives contract, lawyers have said.

Ukrainian steelmaker Metinvest has been notified that holders of in excess of 50% of the outstanding principal amount across its $85.2m 10.25% 2016s, $289.7m 10.5% 2017s and $750m 8.85% 2018s have formed an ad hoc committee.

The Ukrainian government has released the exchange offer for its sovereign Eurobonds, amended from what was previously announced.

The Ukrainian government has released the exchange offer for its sovereign Eurobonds, amended from what was previously announced.

Avangard, Ukraine’s largest egg producer, has appointed a Swiss bank as sole solicitation agent for its planned Eurobond restructuring.

The International Swaps and Derivatives Association ruled on Wednesday that Ukraine has not triggered a repudiation/moratorium credit event following the country’s recent decision to freeze payments on debt.

The IMF’s Christine Lagarde has urged Ukraine’s creditors to vote in favour of restructuring resolutions at a series of meetings the Ukrainian government has scheduled for October.

Iron ore pellet producer Ferrexpo’s talks to reprofile pre-export finance (PXF) debt have taken on an added urgency, after a Ukrainian lender in which the firm held some $174m was declared insolvent.

Avangard, the Ukrainian agribusiness, announced last week that it intends to implement a restructuring proposal with three aims.

Holders of Privatbank’s 2015 bonds agreed to a reprofiling, the lender announced this week. But the terms of the agreement present those same bondholders with an incentive to scupper a similar agreement on Privatbank’s 2016 notes, analysts said.

Ukraine’s creditors should be concerned that the IMF has not yet defined the status of a $3bn Eurobond that Ukraine sold to Russia, said Ukrainian analysts following a IMF/Ukraine government press conference on Sunday.