Ukraine's GDP warrants leap on restructuring proposal

LONDON, Dec 2 (Reuters) - Ukraine's GDP warrants leapt to their highest level in over four years on Tuesday after the government launched a formal plan to restructure the fixed income instruments that would potentially pay out billions of dollars in coming years.

Ukraine wants to retire the $3.2 billion of warrants and replace them with one new bond with rising interest rates. It is also offering investors up to $180 million in cash to back the deal.

Tuesday's reaction was a more than 4 cent jump in the price of warrants. It lifted them to 97.4 cents on the dollar, Tradeweb data showed, their highest level since late 2021 when worries of a Russian invasion were starting to mount.

Kyiv has been in on-off discussions to replace the warrants for much of the year after their complex terms saw them excluded from a broader $20 billion sovereign bond restructuring struck last year.

Advisers for the core group of warrantholders in discussions with Kyiv are due to hold a webinar for investors to ask questions about the plan later on Tuesday.

The Ad Hoc Group, as it is known, has signalled it could back Kyiv's proposal but has recommended warrantholders refrain from voting on the offer until an announcement it has said it will make no later than 1200 GMT on Thursday.

(Reporting by Marc Jones, editing by Karin Strohecker)