Ukraine has once again initiated dialogue with investors regarding the restructuring of debt related to GDP-linked warrants. A group of investors, including leading hedge funds, signed non-disclosure agreements this week to join limited negotiations with the Ukrainian side. These limited negotiations involve the exchange of confidential information and impose temporary restrictions on the sale of securities, as the issues being discussed may impact the market situation.
This is reported by Business • Media
Who is Participating in the Negotiations
Among the main holders of Ukrainian GDP-linked warrants are hedge funds Aurelius Capital Management LP and VR Capital Group. Currently, these securities are trading on the market at a price of over $0.91 per $1, indicating an increase in their value of approximately 20% since the beginning of this year.
History of Previous Negotiations and Issuance Terms
The previous, second round of negotiations regarding restructuring took place from October 16 to November 5, 2025, involving a special committee of institutional investors who control about 35% of Ukraine’s GDP-linked warrants. However, this time, a compromise on the terms of restructuring could not be reached. The first round occurred in April 2025 but also ended without results. The Ministry of Finance of Ukraine expressed hopes to agree on the restructuring of this debt by the end of 2025.
The GDP-linked warrants (currently held by investors with a nominal value of $2.6 billion) were issued during the 2015 debt agreement when investors wrote off 20% of Ukraine’s external debt. Payments on them depend on the dynamics of the country’s GDP growth from 2019 to 2038, but only after two calendar years – that is, between 2021 and 2040.