Energy Ministry pushed Ukrenergo to default: EBRD warns about stopping financing - media

The European Bank for Reconstruction and Development (EBRD) sent a letter to the Ukrainian government warning about the termination of credit programs for NEC Ukrenergo due to uncoordinated amendments to the company's charter, made at the initiative of the Ministry of Energy.

This was reported by Delo.ua with reference to Maksym Khlapuk, a member of the Verkhovna Rada Energy Committee, Ukrainian News Agency reports.

The MP notes that in the letter, the EBRD directly states that the amendments to the charter should, but were not properly communicated to creditors before their adoption.

According to Khlapuk, this situation threatens Ukrenergo not only with the loss of access to further financing from the EBRD in the amount of EUR 141 million (EUR 77 million of the undrawn loan balance and EUR 64 million of the expected grant), but also with the need to pay early the funds already received in the amount of EUR 533 million.

Also, the restructuring of Ukrenergo's debt obligations to the owners of "green" sustainable development bonds is under threat, for which NEC Ukrenergo planned to raise USD 430 million on international capital markets under the guarantee of DFC.

The MP reports that such a debt management operation should be completed in early July, but its success directly depends on the support of international financial institutions.

"And, according to my information, DFC has currently suspended any actions related to the restructuring of "green" bonds," Khlapuk concluded.

As Ukrainian News Agency earlier reported, at the end of April, Ukrenergo reached an agreement on the terms of a debt management transaction for "green" bonds.

The "green" sustainable development bonds are a loan of USD 825 million with a rate of 6.875% per annum and a maturity date of 2028, which NEC Ukrenergo received in 2021 under state guarantees.