1 Jun 2023 09:32

Naftogaz, investors agree on Eurobond restructuring

MOSCOW. June 1 (Interfax) - Naftogaz Ukraine has reached agreements with investors to restructure two issues of Eurobonds with maturity in July 2022 and November 2026, Ukrainian media reported, citing company CEO Alexei Chernyshev, who met with bondholders on Wednesday.

Detailed restructuring proposals have also been approved by the company's management board and supervisory board. The decision is still subject to approval by Ukraine's Cabinet as Naftogaz's shareholder.

Naftogaz expects the restructuring to be completed by the end of July.

In July 2022, Naftogaz proposed to the holders of its three Eurobond issues maturing in 2022, 2024 and 2026 to defer coupon payments on them by two years.

All three of Naftogaz's outstanding Eurobond issues were placed in 2019. They include a three-year issue of $335 million placed at 7.375% in July that year, a five-year issue of 600 million euros placed at 7.125% in July (with the EBRD buying up a fifth), and a seven-year issue of $500 million placed at 7.625% in November. The deadline for the redemption of the 2022 bonds and interest payments on them and the 2024 bonds was July 19, 2022.

Holders of the 2024 Eurobond issue agreed to a restructuring back in August 2022. Talks with investors in the other two issues have continued all this time, with Naftogaz revising the restructuring terms several times.