Ukrainian Cabinet approves term sheet for restructuring Naftogaz's 2022/2026 Eurobonds

MOSCOW. June 26 (Interfax) - The Cabinet of Ministers of Ukraine has agreed on the term sheet for restructuring the Eurobonds of Naftogaz of Ukraine that mature in July 2022 and November 2026, having previously agreed the restructuring with investors, Ukrainian media reported, citing the press release posted on Naftogaz's website.

The Cabinet published the corresponding resolution on its website on Monday.

Naftogaz said that the transaction was due to be completed by the end of the summer in 2023.

"I am very thankful to the Cabinet, as a shareholder of the Company, for approving the conditions of the term sheet agreed with holders of Naftogaz's Eurobonds. This has brought the Company one step closer to fulfilling its obligations to investors," Naftogaz Board Chairman Alexei Chernyshev was quoted as saying in the statement.

Detailed proposals with regard to the term sheet had also been approved earlier by the Management Board and Supervisory Board of Naftogaz of Ukraine, the company said in the statement.

As previously reported, Naftogaz of Ukraine at the end of May 2023 announced an agreement with investors to restructure, by the end of July, two defaulted Eurobond issues, one for $375 million and maturing in July 2022, and the second for $500 million and maturing in November 2026. Naftogaz agreed to improving the terms and conditions somewhat for holders of the securities compared to the previous offer in March.