13 Mar 2023 09:40

Naftogaz revises terms of defaulted Eurobonds restructuring

MOSCOW. March 13 (Interfax) - Naftogaz Ukraine on Friday published a revised version of a proposal the state oil and gas company made a month ago for restructuring Eurobonds on which it defaulted last summer, with the main changes concerning the bonds that matured in 2022.

Naftogaz proposed to raise the interest rate on the 2022 Eurobonds from 7.375% to 7.65% from the date of the approval of the consent solicitation, and to pay down 5% of the principal along with overdue interest on or about April 15, Ukrainian media reported, citing a presentation on the company's website.

At the same time, Naftogaz proposed to defer payment of 50% of the principal debt on the 2022 Eurobonds by two years to July 19, 2024 and defer payment of the other 50% to July 19, 2025, while in February it proposed to redeem the whole issue on July 19, 2024.

For the 2026 Eurobonds, the company still proposes to pay down 50% of the principle on November 8, 2027 and 50% on November 8, 2028.

The company also proposed to defer interest on the 2022 Eurobonds due on January 19, 2023, July 19, 2023 and January 19, 2024 until July 19, 2024; and interest on the 2026 Eurobonds due November 8, 2022, May 8, 2023, November 8, 2023 and May 8, 2024 until November 8, 2024.

Naftogaz also wants to retain the right to repay or capitalize overdue interest fully or in part at any time before the end of the respective interest deferral periods.