Ukraine has reopened negotiations with investors on restructuring its GDP-linked warrants, with a group of major holders entering non-disclosure agreements (NDAs) this week to begin what officials described as “limited” talks involving confidential information and trading restrictions, reported Ukraine Business News.

The consortium includes hedge funds such as Aurelius Capital Management LP and VR Capital Group, several of the largest holders of the instruments, according to people familiar with the discussions. The NDAs prevent participants from selling the securities while sensitive financial details are shared.

Ukraine’s GDP warrants were trading above $0.91 per dollar on November 25, having gained roughly 20% since the start of the year, reflecting investor expectations of eventual repayment once the economy recovers.

A second round of restructuring talks took place from 16 October to 5 November with a special committee representing institutional investors holding about 35% of the warrants, which have a nominal value of $2.6bn. However, the parties have yet to agree on terms, the Finance Ministry said.

Kyiv aims to conclude the restructuring by year-end as it works to stabilise its debt burden amid the war with Russia and ahead of expected new IMF financing. The warrants were created during Ukraine’s 2015 debt overhaul, which included a 20% haircut on external debt and introduced payments tied to GDP growth from 2019 to 2038, with two additional payment years between 2021 and 2040.

The Ministry of Finance reiterated it remains committed to reaching a deal that balances investor interests with Ukraine’s financing needs as it navigates a protracted conflict and a sharply constrained budget.