Unofficial transfer (c) Soyuzpravoinform LLC

RESOLUTION OF THE CABINET OF MINISTERS OF UKRAINE

of July 31, 2024 No. 865

About implementation in 2024 of transactions with public debt and the debt guaranteed by the state

According to the paragraph the second 16, the paragraph the second Item 3-10 of the Section VI "Final and transitional provisions" of the Budget code of Ukraine, part one of article 1 of the Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives" for the purpose of effective management of public debt in the conditions of martial law imposed by the Presidential decree of Ukraine of February 24, 2022 No. 64/2022 "About introduction of warlike situation in Ukraine" the Cabinet of Ministers of Ukraine decides Article parts seven:

1. Perform the transaction on transfer of the debt guaranteed by the state on the borrowings involved in 2021 under the state guarantees for the purpose of financial provision of development of network and content of highways public of the state value (the bond (eurobond), to public debt (further - the transaction on transfer) by exchange, including receipt of consent to obligatory exchange, the debt obligations which arose on such borrowings according to resolutions of the Cabinet of Ministers of Ukraine of April 2, 2021 No. 327 "Question of financing of construction objects, reconstruction, capital and running average repair of highways public of the state value in 2021 due to the borrowings involved under the state guarantees" (The Official Bulletin of Ukraine, 2021, No. 31, the Art. 1785), of April 28, 2021 No. 442 "Question of financing of construction objects, reconstruction, capital and running average repair of highways public of the state value in 2021 due to the borrowings involved under the state guarantees" (The Official Bulletin of Ukraine, 2021, No. 37, the Art. 2232) and of May 26, 2021 No. 519 "Some questions of implementation by the State agency of highways of borrowings under the state guarantees in 2021" (The Official Bulletin of Ukraine, 2021, No. 44, the Art. 2688), on the bond of external state loans of Ukraine of 2024.

2. Approve the Main conditions of transactions with public debt which are performed in 2024 and terms of transaction on transfer of the debt guaranteed by the state on the borrowings involved in 2021 under the state guarantees for the purpose of financial provision of development of network and content of highways public of the state value (the bond (eurobond), to public debt in connection with which placement (issue) of bonds of external state loans of Ukraine of 2024 is performed (further - the main conditions) which are applied.

3. Determine that provisions of the resolution of the Cabinet of Ministers of Ukraine of March 14, 2018 No. 186 "About placement (issue) of bonds of external state loans" (The Official Bulletin of Ukraine, 2018, 26, Art. 938) are not applied No. to bonds of external state loans of Ukraine of 2024 which conditions of placement (issue) are determined in the Main conditions.

4. Due to the implementation of transactions with public debt on bonds of external state loans of 2018 of the first series it is temporary to stop since August 1, 2024 implementation of payments on the debt obligations of the state connected with payment of interest income on bonds of external state loans of 2018 of the first series of rather interest income added and delayed concerning the periods of charge of interest income since February 1, 2022 till January 31, 2024 (inclusive) and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income since February 1, 2024 till July 31, 2024 (inclusive) for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives".

4-1. Due to the implementation of transactions with public debt on bonds of external state loans of 2015 of the fourth - series it is temporary to ninth to stop since September 1, 2024 implementation of payments on the corresponding debt obligations of the state for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives".

4-2. To stop temporarily:

since September 3, 2024 implementation of payments on debt obligations of the state on the credits from Cargill Financial Services International, Inc., specified in appendix 2 to the Law of Ukraine "About features of transactions with the state, guaranteed by the state debt and local debt and the state derivatives", for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives";

since November 9, 2024 implementation of payments according to warranty obligations of the state of rather debt obligations on green bonds of sustainable development of private joint-stock company "The national energy company "Ukrenergo", issued under the state guarantee in 2021, for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives";

since May 31, 2025 implementation of payments according to obligations on the state derivatives of 2015 for term, the stipulated in Clause 2-1 Law of Ukraine" About features of transactions with the state, guaranteed by the state debt and local debt and the state derivatives", namely for a period of up to making of such transaction (transactions) and determination of its conditions therefore the state derivatives will be completely exchanged for bonds of external state loan of Ukraine and/or are completely cancelled.

5. To the Ministry of Finance:

1) to perform placement (issue) of bonds of external state loans of Ukraine of 2024 according to the Main conditions;

To provide 2) in case of creation of the draft of the government budget of Ukraine for the corresponding year of means for repayment and servicing of bonds of external state loans of Ukraine of 2024 which conditions of placement (issue) are determined in the Main conditions;

3) in connection with implementation of transactions with public debt to provide implementation of payment for consent and the first part of payment for result in the amount of, together not exceeding 246 million USA, in accordance with the terms, determined in the documents connected with implementation of transactions with public debt, in particular the memorandum in connection with the offer on exchange and receipt of consent, the engagement letter about rendering services of the agent by calculations, exchange, the redemption and provision of information and written instructions of bondholders of external state loans of Ukraine according to appendix to the main conditions;

3-1) second part of payment for result are paid by deduction from the amount of interest income on bonds of external state loans of Ukraine of 2024 of part A of the second series which is subject to payment on February 1, 2025, in accordance with the terms, determined in the documents connected with implementation of transactions with public debt, in particular the memorandum in connection with the offer on exchange and receipt of consent, the engagement letter about rendering services of the agent by calculations, exchange, the redemption and provision of information and written instructions of bondholders of external state loans of Ukraine according to appendix to the Main conditions. Such deduction in proportion reduces the amount which each holder will receive within payment of the interest income which is subject to payment on February 1, 2025 on the following bonds";

4) to provide temporary suspension of implementation of payments on the debt obligations of the state connected with payment of interest income on bonds of external state loans of 2018 of the first series of rather interest income added and delayed concerning the periods of charge of interest income since February 1, 2022 till January 31, 2024 (inclusive) and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income since February 1, 2024 till July 31, 2024 (inclusive) for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives";

5) to provide temporary suspension of implementation of payments on debt obligations of the state on bonds of external state loans of 2015 of the fourth - the ninth series, with the credits from Cargill Financial Services International, to Inc., specified in appendix 2 to the Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives", and warranty obligations of the state of rather debt obligations on green bonds of sustainable development of private joint-stock company "The national energy company "Ukrenergo", issued under the state guarantee in 2021, for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives";

6) to provide temporary suspension of implementation of payments according to obligations on the state derivatives of 2015 for term, the stipulated in Clause 2-1 Law of Ukraine" About features of transactions with the state, guaranteed by the state debt and local debt and the state derivatives", namely for a period of up to making of such transaction (transactions) and determination of its conditions therefore the state derivatives will be completely exchanged for bonds of external state loan of Ukraine and/or are completely cancelled.

6. To provide to the state agency of recovery and development of infrastructure in connection with implementation of the transaction on transfer implementation of payment for consent in the amount of, not exceeding 8, 75 million US dollars.

7. To the public treasurer service for term, the stipulated in Clause 1 Law of Ukraine "About features of implementation of transactions with the state, guaranteed by the state debt and local debt and the state derivatives":

Implementation of transactions with the means provided in the Government budget for implementation of expenses on repayment and servicing of the debt obligations of the state connected with payment of interest income on bonds of external state loans of 2018 of the first series of rather interest income added and delayed concerning the periods of charge of interest income from February 1, 2022 to January 31, 2024 (inclusive) and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income from February 1, 2024 to July 31, 2024 (inclusive) is temporary to stop 1);

Implementation of transactions with the means provided in the Government budget for is temporary to stop 2):

implementation of expenses on repayment and servicing of debt obligations of the state on bonds of external state loans of 2015 of the fourth or ninth of series;

implementation of expenses on repayment and servicing of debt obligations of the state on the credits from Cargill Financial Services International, Inc., specified in appendix 2 to the Law of Ukraine "About features of transactions with the state, guaranteed by the state debt and local debt and the state derivatives";

implementation of the payments connected with accomplishment of warranty obligations of the state on debt obligations on the green bonds of sustainable development of private joint-stock company "The national energy company "Ukrenergo" issued under the state guarantee in 2021;

implementation of expenses on payments for the state derivatives of 2015.

8. To the Minister of Finance (person fulfilling its duties) to sign agreements and to sign other documents connected with implementation of transactions with public debt and the transaction on transfer according to the Main conditions.

9. This resolution becomes effective along with the Law of Ukraine of July 18, 2024 No. 3880-IX "About modification of the Section VI "Final and transitional provisions" of the Budget code of Ukraine", but not earlier than day of its publication.

Approved by the Resolution of the Cabinet of Ministers of Ukraine of July 31, 2024 No. 865

The main conditions of transactions with public debt which are performed in 2024 and terms of transaction on transfer of the debt guaranteed by the state on the borrowings involved in 2021 under the state guarantees for the purpose of financial provision of development of network and content of highways public of the state value (the bond (eurobond), to public debt in connection with which placement (issue) of bonds of external state loans of Ukraine of 2024 is performed

1. Transactions with public debt are performed in 2024 by exchange, including receipt of consent to obligatory exchange, external debt obligations of the state on bonds of external state loans of Ukraine according to the list according to appendix (further - the existing government bonds) on the bond of external state loans of Ukraine of 2024, placement (issue) of which is performed according to these Main conditions (further - new government bonds).

2. The transaction on transfer of the debt guaranteed by the state on the borrowings involved in 2021 under the state guarantees for the purpose of financial provision of development of network and content of highways public of the state value (the bond (eurobond) (further - the existing guaranteed bonds), to public debt in 2024 is performed by exchange, including receipt of consent to obligatory exchange, debt obligations on such borrowings on new government bonds.

3. New government bonds are placed two parts (new government bonds of part A and new government bonds of part B) eight separate series in US dollars.

4. New government bonds of part and are placed on the main amount in the amount of, not exceeding 40 percent of the outstanding main amount on the existing government bonds and the existing guaranteed bonds (further - the existing bonds), and the interest income added on the existing bonds and delayed in 2022 and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income till July 31, 2024 (inclusive).

New government bonds of part and are placed with the following repayment dates:

new government bonds of part and the first series-1 of February, 2029;

new government bonds of part and the second series-1 of February, 2034;

new government bonds of part and the third series-1 of February, 2035;

new government bonds of part and the fourth series - on February 1, 2036.

Interest income according to new government bonds of part A is paid each half a year on February 1 and on August 1 every year before the corresponding repayment date on the following return rates:

since August 1, 2024 (inclusive) till August 1, 2025 - annual interest rate 1,75;

since August 1, 2025 (inclusive) till February 1, 2027 - annual interest rate 4,5;

since February 1, 2027 (inclusive) till August 1, 2033-6 annual interest rates;

since August 1, 2033 (inclusive) before the corresponding repayment date - annual interest rate 7,75.

Interest income according to new government bonds of part and is charged since August 1, 2024 before the corresponding repayment date and paid since February 1, 2025.

5. New government bonds of part B are placed on the main amount in the amount of, not exceeding 23 percent of the outstanding main amount on the existing bonds, and the interest income added on the existing bonds and delayed in 2022 and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income till July 31, 2024 (inclusive).

New government bonds of part B are placed with the following repayment dates:

new government bonds of part B of the first series-1 of February, 2030;

new government bonds of part B of the second series-1 of February, 2034;

new government bonds of part B of the third series-1 of February, 2035;

new government bonds of part of the fourth series-1 of February, 2036.

Interest income according to new government bonds of part B

it is paid each half a year on February 1 and on August 1 every year before the corresponding repayment date on the following return rates:

since August 1, 2024 (inclusive) till February 1, 2027 - on zero return rate;

since February 1, 2027 (inclusive) till August 1, 2033 - 3 annual interest rates;

since August 1, 2033 (inclusive) before the corresponding repayment date - annual interest rate 7,75.

Interest income according to new government bonds of part B is charged since February 1, 2027 before the corresponding repayment date and paid since August 1, 2027.

6. New government bonds of part B (the third and fourth series) can be placed on November 15, 2029 for the additional main amount if conditions of increase in the main amount are satisfied.

Conditions of increase in the main amount are:

nominal gross internal product in 2028 financial year (according to the data published in the database of the International Monetary Fund "Forecasts of development of world economy" for October, 2029 (or in case they are not published, according to the data posted on the official site of the Ministry of Finance), information on which shall be prepared by Ukraine according to System of national accounts of 2008 or other internationally acknowledged statistical methodology of creation of national accounts) the minimum for 3 percent exceeds nominal gross internal product in 2028 financial year predicted by the International Monetary Fund in the basic scenario within the fourth review of expanded arrangements within the program of the Mechanism of expanded financing for Ukraine of June 28, 2024

real gross internal product in 2028 financial year (according to the data published in the database of the International Monetary Fund "Forecasts of development of world economy" for October, 2029 (or in case they are not published, according to the data posted on the official site of the Ministry of Finance), information on which shall be prepared by Ukraine according to System of national accounts of 2008 or other internationally acknowledged statistical methodology of creation of national accounts) at least is equal to real gross domestic product in 2028 financial year predicted by the International Monetary Fund in the basic scenario within the fourth review of expanded arrangements within the program of the Mechanism of expanded financing for Ukraine of June 28, 2024.

The additional main amount is the amount in the amount of, not exceeding 12 percent of the cumulative outstanding main amount on the existing bonds and the interest income added on the existing bonds and delayed in 2022 and also any interest income added, but not paid on such interest income and the interest income added concerning the period of charge of interest income till July 31, 2024 (inclusive). The maximum placement in full 12 percent on the scenario according to which the nominal gross internal product in 2028 financial year exceeds the basic scenario of the International Monetary Fund on 7,5 of percent or more (according to the scenario according to which hryvnia exchange rate to US dollar for 2028 (is calculated on the basis of the day exchange rate of hryvnia to US dollar published by National Bank on its official site for every day during 2028 (in case of lack of such publication by National Bank according to reasoned decision of the Ministry of Finance) is implemented according to the forecast of the International Monetary Fund in the basic scenario within the fourth review of expanded arrangements within the program of the Mechanism of expanded financing for Ukraine of June 28, 2024).

Calculation of the additional main amount is perfromed on the following formula:

DOS = X/Y x Z,

where the DOS-additional main amount on each 1 thousand dollars of the USA;

The X-indicator determined by the following formula:

X = ((A-B x 1,03) x 0,2787)/C,

where A-nominal gross internal product of Ukraine for 2028;

The B-predicted nominal gross internal product of Ukraine for 2028;

S-average hryvnia exchange rate to US dollar for 2028 (is calculated on the basis of the day exchange rate of hryvnia to US dollar published by National Bank on its official site for every day during 2028 (in case of lack of such publication by National Bank, according to reasoned decision of the Ministry of Finance);

The Y-outstanding main amount according to new government bonds of part to the third series and new government bonds of part B of the fourth series;

Z-1 of thousand dollars of the USA.

7. Nominal value of one new government bond makes 1 thousand dollars of the USA and large sum that is integer, to multiple 1 US dollar.

8. Repayment and servicing of new government bonds is performed at the expense of the means provided by the law on the Government budget of Ukraine for the corresponding year for repayment and servicing of public debt.

9. Other conditions of placement (issue) of new government bonds are determined by the agreement on trust management (Trust Deed) concerning new government bonds and other documents.

10. By results of implementation of transactions with public debt and the transaction on transfer of the debt guaranteed by the state on the existing guaranteed bonds in public debt in 2024 (further - the transaction on transfer) holders of the existing government bonds and holders of the existing guaranteed bonds will receive new government bonds of part A and new government bonds of part B in accordance with the terms of distributions which are described in the memorandum in connection with the offer on exchange and receipt of consent (Exchange Offer and Consent Solicitation Memorandum).

11. By results of implementation of transactions with public debt and the transaction on transfer the existing government bonds and the existing guaranteed bonds from the date of calculations (Settlement Date) (this term is determined in the memorandum in connection with the offer on exchange and receipt of consent (Exchange Offer and Consent Solicitation Memorandum) are extinguished.

12. Other conditions of transactions with public debt and transactions on transfer are established by the documents connected with implementation of transactions with public debt and transactions on transfer, in particular the memorandum in connection with the offer on exchange and receipt of consent (Exchange Offer and Consent Solicitation Memorandum).

13. The additional placement (issue) of new government bonds on the conditions defined by these Main conditions and the agreement on trust management (Trust Deed) of rather new government bonds is performed for the purpose of implementation of transactions with the state derivatives which conditions are determined by the Cabinet of Ministers of Ukraine.

Appendix

to the Main conditions

List of external debt obligations

Name of external debt obligation, year of origin	Final repayment date	Outstanding main amount
Bonds of external state loan of 2015, fourth series	On September 1, 2024	912 354 000 US dollars
Bonds of external state loan, the fifth series in 2015	On September 1, 2025	1,355,231,000 of US dollars
Bonds of external state loan of 2015, Sixth series	On September 1, 2026	1,339,057,000 of US dollars
Bonds of external state loan of 2015, seventh series	On September 1, 2027	1 328 887 000 US dollars
Bonds of external state loan of 2015, eighth series	On September 1, 2028	1 317 940 000 US dollars
Bonds of external state loan of the ninth series in 2015	On September 1, 2029	1 307 161 000 US dollars
External government bonds 2017	Mart 25, 2033 September 25, 2033 March 25, 2034 September 25, 2034	3 000 000 000 US dollars
External government bonds of 2018 of the first series	On February 1, 2026	750 000 000 US dollars
Bonds of external state loan of the second series in 2018	On November 1, 2030	1 600 000 000 US dollars
External government bonds 2019	On June 20, 2028	1 000 000 000 euros
Bonds of external state loan for 2020	On January 27, 2032	1 250 000 000 euros
Bonds of external state loan for 2020	March 15, 2035.	2 600 000 000 US dollars
Bonds of external state loan for 2021	May 21, 2031.	1 750 000 000 US dollars

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