3 March 2016

Avellum Advises the Ministry of Finance of Ukraine on Restructuring of Sovereign-Guaranteed Loans

Kyiv, 3 March 2016 – Avellum acted as Ukrainian counsel to the Ministry of Finance of Ukraine on the restructuring of the following three sovereign-guaranteed loans:

Sovereign-guaranteed term loans from JSC Sberbank of Russia to each of the State Road Agency of Ukraine (“Ukravtodor”) and Yuzhnoye State Design Office in the total outstanding principal balance of approximately USD367 million

Sovereign-guaranteed loan from Citibank and JSC Sberbank of Russia to Ukravtodor in the outstanding principal balance of EUR37.3 million

Pursuant to the restructuring terms, the outstanding principal balance of these sovereign-guaranteed loans and accrued interest thereon were discharged in full, and these loans were terminated, in exchange for the delivery to lenders in respective portions of (i) USD315,769,000 aggregate principal amount of Ukraine’s 7.75% Notes due 2019, representing 75% of the outstanding principal balance of loans (plus accrued interest), and (ii) USD102,246,000 aggregate notional amount of Ukraine’s GDP-linked Securities, representing the remaining 25% of the outstanding principal balance of the loans.

The restructuring of these sovereign-guaranteed loans was conducted in full compliance with the financing targets established in Ukraine’s Extended Fund Facility with the IMF agreed in March 2015.

Avellum team was led by Partner, Glib Bondar, with lead associates Artem Shyrkozhukhov and Taras Dmukhovskyy, and a team of lawyers, including Taras Stadniichuk, Anastasiya Voronova, Pavlo Shevchenko and Orest Franchuk.