5 Nov 2009 17:54

Naftogaz completes restructuring of $1.6 bln in foreign debt

KYIV. Nov 5 (Interfax) - Ukrainian national oil and gas company Naftogaz Ukrainy has completed restructuring $1.6 billion in foreign debt via a formal exchange of Eurobonds and liabilities for obligations that will be exchange listed, the company said in a statement.

"The new obligations, issued under government guarantee and maturing in 2014 with a coupon rate of 9.5%, were submitted to the clearing system today," the statement says.

The restructured debt includes $500 million in bonds maturing September 30, 2009 and $1.1 billion in bilateral loans.

The restructuring was approved by bondholders representing 93% of the bonds and all of the other creditors concerned.

"It was a technically complex process. Aside from a considerable easing of the debt burden on Naftogaz, the transaction will help to create a positive image for Ukraine on global capital markets and demonstrate successful cooperation with the government," company CEO Oleg Dubina is quoted in the statement as saying.