Ukraine proposes to defer payments on Ukrenergo, Ukravtodor Eurobonds by two years

MOSCOW. July 27 (Interfax) - Ukraine is asking investors in the securities of the State Automobile Roads Agency (Ukravtodor) and power company Ukrenergo to defer payment of debts on them by at least two years, Prime Minister Denys Shmyhal said on Telegram.

"Today the government approved documents with which it proposes to the holders of Ukravtodor bonds totaling $700 million to defer payment of interest on them until the end of 2024. The holders of Ukrenergo securities totaling $825 million have also been asked to defer payments for two years," Shmyhal said.

He said that creditors will hopefully support Ukraine's appeal and remarked that in the current circumstances this policy will apply to all the country's obligations.

"As part of the concerted and coordinated policy that the Finance Ministry is introducing, Ukraine is openly talking with all of its creditors about deferring payments on debts, including the debts of state companies," Shmyhal said.

The government is now consolidating all available resources for the priorities of financing the army, preparing for the heating season, paying pensions and restoring critical infrastructure, he said.

Ukrenergo raised $825 million at 6.875% last November with a debut issue of five-year "green" Eurobonds under government guarantees; interest on the bonds is paid semi-annually. The proceeds from the bonds were used to pay for electricity generated by renewable sources.

Ukravtodor raised $700 million at 6.25% in June 2021 with a debut issue of Eurobonds that was also backed by state guarantees.

Ukraine on July 20 asked investors in its Eurobonds to defer all payments on the bonds for two years as of August 1 while maintaining the current rate of return. At the end of this term, interest would be paid immediately or capitalized. Ukraine also proposed to change the terms of its GDP warrants.