28 Jul 2022 16:27

Ukrenergo requesting redemption of $825 mln in Eurobonds be postponed from Nov 2026 to Nov 2028

MOSCOW. July 28 (Interfax) - Ukrenergo has announced a proposal for investors on altering the terms of an issue of $825 million in sustainability bonds with a yield of 6.875% and maturing in November 2026, Ukrainian media are reporting citing the company.

Namely, the company's website suggests that the Eurobond's maturity date be postponed by 24 months, to November 2028.

The proposals shifts coupon payments on the Eurobonds, which are due within 24 months starting from the next interest payment date, to 2028, the company said.

At the same time, it is envisaged that despite the postponement, accrual of interest will take place at a coupon rate of 6.875% and with the possibility of capitalization of deferred amounts at the end of this period.

According to Ukrenergo CEO Vladimir Kudrytsky, the investors' decision is expected by August 9.

"We propose that the coupon payment on the bonds be postponed by two years - from 2026 to 2028, with the maturity date of the bonds shifted to November 2028. After the terms of the issue are changed, the bonds will still be covered by the state guarantee, regarding which there is already an official decision by the Cabinet," Kudritsky said in his social media on Thursday.

This step will significantly help Ukrenergo in providing support for Ukraine's energy sector, he said.

At the same time, the CEO expressed hope that the company's reputation and impeccable fulfillment of its financial obligations in the past will allow it to obtain investors' consent.

According to Ukrenergo's announcement via the London Stock Exchange, the request for investor consent expires at 5 p.m. New York time on August 9, 2022, and an announcement is scheduled for August 10 or immediately after the request expires.

On July 26, the Ukrainian government approved documents that propose that Ukrenergo bondholders allow the deferral of two years on $825 million in the company's bonds.