Finance
Creditor group backs Ukraine's plan to swap $2.6 billion of GDP warrants
Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 9, 2025
2 min readLast updated: January 20, 2026
Ukraine secures creditor backing to swap $2.6 billion GDP warrants, aiming to stabilize post-war economy and ensure debt sustainability.
By Marc Jones
LONDON, Dec 9 (Reuters) - Ukraine secured crucial support from creditors on Tuesday for its plan to retire $2.6 billion of growth-linked debt that officials have warned could strain public finances once the war with Russia ends.
Kyiv launched the offer on December 1 to replace its so-called GDP-linked warrants for new bonds with interest rates that step up from 4% to 7.25%, plus up to $180 million in cash if the deal is approved quickly with widespread support.
The Ad Hoc Group of creditors, which has spearheaded negotiations with Kyiv and rejected two previous proposals, said the latest talks had delivered "significant improvements" to the drafting of the replacement bond terms.
"The Ad Hoc Group confirms its support for the Invitation as set out in the supplemental documents," it said in a statement.
It had previously sought more clarity on legal protections, including in the event of a future Ukrainian default.
Ukraine confirmed in a regulatory filing that the new bonds would include terms that "differ from the non-financial terms of the existing Securities", and extended the early consent deadline for holders to get the maximum additional cash for their warrants to December 15 from December 12.
DEBT SUSTAINABILITY
Kyiv wants to eliminate the warrants because their GDP-linked structure could cost billions annually in a post-war scenario of rapid reconstruction-led growth.
In a separate statement, the finance ministry welcomed the Ad Hoc Group's backing and urged other warrantholders to follow suit.
"The invitation represents the best possible solution to comply with Ukraine’s long-standing commitment to restructure the Warrants to help restore Ukraine’s debt sustainability," it said.
The ministry added that the proposal had also been reviewed by the International Monetary Fund and Kyiv's official lenders, the Group of Creditors of Ukraine (GCU).
The warrants were created during Ukraine's 2015 debt restructuring after Russia annexed Crimea. Finance Minister Serhii Marchenko has called them "designed for an economic reality that no longer exists".
The price of the warrants rose about 1 cent after Tuesday's announcement to 100.5 cents on the dollar.
Ukraine hopes to finalise the deal by year-end, clearing a major hurdle to curing the default triggered by Russia's 2022 full-scale invasion and smoothing the path to a new IMF programme.
(Reporting by Marc Jones. Editing by Karin Strohecker and Mark Potter)
Debt sustainability refers to a country's ability to manage its debt levels without requiring debt relief or accumulating excessive debt. It ensures that the country can meet its current and future debt obligations.
GDP-linked warrants are financial instruments that provide returns based on the growth of a country's GDP. They are designed to offer investors a share in a country's economic growth.
The International Monetary Fund (IMF) is an international financial institution that aims to promote global economic stability and growth by providing financial assistance and advice to member countries.
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