Ukrenergo in talks with bondholders on way out of technical default

MOSCOW. Feb 20 (Interfax) - Ukrenergo is engaged in negotiations with bondholders to find a way out of the technical default declared in November 2024, and a solution to this problem will send a signal for external financing to be unblocked, member of the company's Supervisory Board Yury Boiko said.

"Candid, difficult talks are ongoing with investors in the green bonds, which once helped finance the national energy company's operations and significantly cut the debt to green generation. I believe that this problem will be resolved nonetheless," Ukrainian media quoted Boiko as saying at an event in Kiev on Wednesday.

Boiko said that if this issue, which he described as critical, is resolved, it will send a strong signal the external financing for Ukrenergo can be unblocked.

"Actually, no one is blocking the flow of external financing for Ukrenergo on purpose, but I have to admit that it has slowed," he said.

As reported, Ukrenergo CEO Alexei Brekht said in early February that one of the company's top priorities is to successfully complete the restructuring of its debt on green bonds, which were issued under government guarantees. Ukrenergo is also extensively working with other organizations, including the European Investment Bank (EIB) and the European Bank for Reconstruction and Development, Brekht said, adding he believes that Ukrenergo has quite a good chance of raising external financing, as it requires large investments to be able to repair and protect the power grid.

From November 9, 2024, Ukrenergo suspended payments on debt obligations under $825-million green sustainable development bonds issued in 2021.

In late December 2024, Ukrenergo received 86 million euros from the EIB to equip its key substations with protection against drones.

Ukrenergo has received a total 1.5 billion euros in international aid, including loans and grants, since the start of the crisis.