City of Kyiv exchange participation

Обзор облигаций 09.12.2015 At yesterday's City of Kiev bondholders' meeting, 92% of the holders of Kyiv-16 Eurobonds participated, from which 99% voted in favor of the exchange. Also, 57% of the holders Kyiv-15 Eurobonds voted in favor of participation in the exchange, while their deadline for acceptance was postponed to 16 December. Investment implications: Almost all bonds of Kyiv-16 and at least 57% of Kyiv-15 will be exchanged - and more holders will likely join the deal. Currently market prices are nearly at the NPV of the new instruments and significantly better than they were before the bondholders' meeting was announced. In our view, this outcome is very positive and most bonds will be exchanged.