Naftogaz makes payments on restructured Eurobonds
MOSCOW. July 19 (Interfax) - Ukraine' Naftogaz has made mandatory payments on Eurobonds in keeping with the restructuring schedule, Ukrainian media reported, quoting a statement posted on the company's website.
"Under the terms of the restructuring, Naftogaz has made mandatory payments, and the next one is scheduled for November 2024. We are fulfilling our obligations in good faith. Getting out of default demonstrates our reliability to international partners and enables Naftogaz to attract new capital investments for the company's development," Ukrainian media quoted Naftogaz CEO Alexei Chernyshov as saying.
In July 2022, ahead of their maturity date, Naftogaz initiated the restructuring of Eurobonds worth almost $1.5 billion following initiatives by the Ukrainian government. Bond holders did not consent and the bonds defaulted on July 19, 2022, as the company did not pay principal or interest. However, in August 2022, Naftogaz agreed on the restructuring of euro-denominated Eurobonds worth 600 million euros and accrued interest, extending maturity by two years.
Then, in November 2022, the company defaulted on interest payments on another $500 million Eurobond issue due in 2026, offered to extend maturity by two years and brought in financial advisers to restructure it.
In May 2023, Naftogaz said agreements had been reached with investors, who consented to some improvement in terms for holders of two default issues and payment, along with overdue interest, of 5% of the principal amount of the debt. The main changes were a tightening of covenants, payment of the last semi-annual coupon in cash, the creation of an interest payment fund for the 2026 bonds, as well as the emergence of a restructuring fee.
In June 2023, the terms were approved by the government, and at the end of July, Eurobond holders finally gave their backing to s the restructuring. Naftogaz completed work on debt restructuring during September 2023 for all Eurobond issues and made all agreed payments to Eurobond holders.
The Fitch ratings agency said in December 2023 that following completion of the Eurobond restructuring process, the first two significant payments must be made in July 2024 and July 2025 - about $165.5 million each.
Naftogaz swung to consolidated net profit of UAH 10.9 billion in Q1 2024 from UAH 1.9 billion a year previously. Revenue grew 33.8% to UAH 85.14 billion.