Naftogaz announces exit from default

The Naftogaz of Ukraine national joint-stock company fulfilled the terms of the restructuring of Eurobonds due in 2022 and 2026, making the necessary payments, thus the company exited default.

This is stated in the company's message, Ukrainian News Agency reports.

"The official exit from default on Eurobonds 2022/26 gives us the opportunity to consider new financing of the capital investment plan for the development of the group. This was preceded by a lot of work with investors. We thank our international partners for their cooperation and trust," said Oleksii Chernyshov, Chairman of the Board of Naftogaz.

As Ukrainian News Agency earlier reported, in July, investors agreed to the restructuring of Naftogaz Eurobonds due in July 2022 and November 2026.

In August 2022, the holders of Eurobonds of Naftogaz of Ukraine agreed to postpone payments for Eurobonds-2024, while the holders of Eurobonds-2026 did not support the company's proposal to postpone payments.

Also in August, holders of Naftogaz Eurobonds maturing in July 2022 rejected the company's second proposal to postpone payments for two years.

On July 26, Naftogaz did not make the necessary payments for Eurobonds-2022, thus, the company's Eurobonds defaulted.

In November 2019, Naftogaz placed 7-year Eurobonds in the amount of USD 500 million with a rate of 7.625% per annum.

Also, in July 2019, Naftogaz placed five-year Eurobonds for EUR 600 million with a rate of 7.125% per annum and three-year Eurobonds for USD 335 million with a rate of 7.375% per annum.