Ukrenergo and Ukravtodor to offer holders of their Eurobonds to defer payments

MOSCOW. July 21 (Interfax) - Ukraine, which has asked the holders of its bonds to postpone all bond payments for two years, expects the state-owned companies Ukrenergo and Ukravtodor to put forth similar proposals to the holders of their Eurobonds issued with state guarantees.

These companies will take such steps "in the near future", the Ukrainian media said, citing a presentation prepared in time for the global call organized by J.P. Morgan with investors regarding the aforementioned proposals.

In November 2021, Ukrenergo placed its first five-year "green" Eurobonds with state guarantees for $825 million at 6.875% and with coupon payments twice a year. The proceeds from the Eurobond issue were spent on paying for electricity generated from renewable sources.

The Ukravtodor state motor roads agency of Ukraine, in turn, placed its first Eurobonds for $700 million at 6.25% in June 2021 with state guarantees.

As reported, Ukraine on Wednesday asked the holders of its Eurobonds to postpone all payments on them and extend their circulation period for 24 months from August 1, keeping the current yield rates.

Furthermore, Ukraine's international partners in the G7 and the Paris Club of creditors have announced their readiness to suspend Ukraine's debt service obligations until the end of 2023, with the possibility of extending this suspension by another year. They have also urged private creditors to accept Ukraine's proposals on delaying payments on its Eurobonds and amending the terms of GDP-linked warrants.