Ukraine completes GDP warrant restructuring, eliminating major fiscal risk
Minister of Finance Sergiy Marchenko (Photo: Facebook page of the official)

Ukraine has successfully completed the restructuring of government derivatives linked to GDP, known as GDP warrants, the Ministry of Finance reported on Wednesday.

Under the transaction, $2.64 billion worth of GDP warrants were exchanged for new sovereign bonds. Holders received Series C bonds maturing in 2032 with a total nominal value of $3.50 billion, as well as Series B bonds maturing in 2030 and 2034, amounting to $16.9 million per series.

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Following the exchange, all outstanding GDP warrants were fully canceled.

The conversion of growth-linked derivatives into conventional debt instruments significantly reduces risks to Ukraine’s public finances. According to the Ministry of Finance, without the restructuring, payments on GDP warrants between 2025 and 2041 could have totaled between $6 billion and $20 billion, depending on economic growth rates.

"This restructuring will allow Ukraine to save billions of dollars in potential repayments during the post-war recovery period," Finance Minister Serhii Marchenko said. "Replacing GDP warrants with standard bonds that include an aggregation mechanism improves predictability and reduces long-term fiscal volatility. We are removing from circulation a toxic instrument that posed a serious risk to public finances and could have undermined Ukraine’s recovery and reconstruction."

  • In addition to the $2.6 billion in GDP warrants, Ukraine still needs to complete the restructuring of Ukrenergo’s sovereign-guaranteed Eurobonds worth $825 million. A preliminary agreement was reached in April, but final completion was postponed until early 2026. The country also plans to restructure a $700 million external commercial loan provided by Cargill.
  • Ukraine completed the main restructuring of its external commercial debt — totaling $20.5 billion, or 78% of all commercial external obligations — in September 2024. As a result of these steps, Ukraine has exited the state of "limited default," according to Fitch Ratings.