15 Feb 2024 13:57

Ukrainian government asks NBU to allow DTEK to purchase foreign currency for Eurobond settlements

MOSCOW. Feb 15 (Interfax) - Ukraine's Cabinet of Ministers has asked the National Bank of Ukraine (NBU) to allow the sale of foreign currency to six enterprises within the DTEK holding, as well as its further transfer for settlements on Eurobonds and with foreign creditors.

Ukrainian media reported that the orders published on the government portal refer to an application for the provision of separate permits for cross-border currency transfers.

DTEK Energy (the operating company responsible for coal mining and the production of electricity from coal within the holding structure) had an external debt to foreign creditors under Eurobonds at the end of 2023 of over $1.1 billion. The funds raised were used for investments into coal mining and thermal generation.

In order to partially pay down this debt, the Government of Ukraine is requesting that PJSC DTEK Pavlogradugol be allowed to conduct payment transactions in favor of DTEK Energy B.V. for $229.735 million and $31.851 million, and DTEK Kurakhovskaya TPP LLC for $30.365 million in favor of DTEK Investments Limited.

In addition, for settlements with creditors of DTEK Neftegaz group (consolidating assets for the production and exploration of hydrocarbons), whose funds went to gas well drilling projects, the government requests that NGD Holding LLC be allowed to conduct payment transactions in favor of DTEK Oil & Gas Production B.V. for $33.031 million and $31.86 million, and PJSC Naftogazvydobuvannya for $32.484 million in favor of NGD Holdings B.V.

For settlements with creditors of DTEK Renewables Group (manages the holding's assets in the field of renewable energy sources), which has invested over 1 billion euro in the renewable energy sector, the government is requesting to allow DTEK Pokrovskaya SES LLC to conduct payment transactions in favor of DTEK Renewables Finance B.V. of 55.25 million euro, and DTEK Nikopol SES LLC for 10.273 million euro in favor of China Machinery Engineering Corporation.

According to the NBU decree "On the operation of the banking system during the introduction of martial law," issued on February 24, 2022, Ukrainian banks are prohibited from conducting cross-border currency transfers from Ukraine. An exception is made for transfers based on separate regulatory approvals adopted through orders from the country's Cabinet of Ministers. An order must contain a specific request for permission to conduct the relevant currency transaction.