As of November 9, 2024, the national energy company Ukrenergo will temporarily stop making payments on debt obligations for green sustainable development bonds issued in 2021 under a state guarantee.
This is stated in the message of Ukrenergo, Ukrainian News Agency reports.
The message states that the relevant suspension is in accordance with the Law of Ukraine "On the Peculiarities of Transactions with State, State-Guaranteed Debt and Local Debt and State Derivatives" and the decisions of the Cabinet of Ministers of Ukraine and the relevant authorized management body - the Ministry of Energy of Ukraine, adopted to implement this Law.
It is noted that this legislation is aimed at ensuring the economic security of the state, the long-term sustainability of the state and state-guaranteed debt, and the implementation of the cooperation program between Ukraine and the International Monetary Fund (IMF).
"The company informed its partners and creditors about the temporary suspension of payments for green sustainable development bonds, and also provided assurances about the company's operational and financial stability," the message said.
NEC Ukrenergo will continue to fulfill its obligations and operational functions provided for by national legislation and the Company's Charter.
As Ukrainian News Agency earlier reported, Ukrenergo placed five-year "green" sustainable development Eurobonds worth USD 825 million with a yield of 6.875 percent per annum at the beginning of November 2021.
The government of Ukraine acted as guarantor for the return of loan funds.
The funds were to be used to finance or refinance relevant "green" projects, preferably to repay debts to the state enterprise Guaranteed Buyer.
In 2022, Ukrenergo and bondholders agreed on the postponement of bond payments.
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