The Naftogaz of Ukraine national joint-stock company offers holders of Eurobonds a new agreement on the postponement of payments.
This is stated in the message of the government, Ukrainian News Agency reports.
"Following Ukraine's announcement on July 20 about the launch of public debt management operations and the adoption of the Cabinet of Ministers' order No. 670 of August 1, 2022, on August 2, 2022, Naftogaz of Ukraine began the procedure of requesting Eurobond holders to amend the conditions of its respective debt obligations. Eurobond holders are invited to agree to certain changes to the terms of such securities, including a two-year deferment of principal and interest payment terms, which are broadly similar to the terms of the offer made by Ukraine regarding government Eurobonds," the statement says.
According to the statement, if creditors approve the postponement of Eurobond payments, the freed funds will be used to purchase gas before the heating season.
"If approved, these Naftogaz Eurobond debt transactions will further preserve foreign currency liquidity in the country, allowing Naftogaz to focus its available financial resources on strategic priorities, such as acquiring sufficient natural gas to meet expected needs during of the 2022/23 heating season...The Cabinet of Ministers calls on investors to support Naftogaz's debt management proposals, which are part of Ukraine's proactive management of its debt obligations, as well as the debt obligations of important state institutions, in cooperation with investors and taking into account the priorities and strategic goals of Ukraine," the statement says.
As Ukrainian News Agency earlier reported, on July 26, Naftogaz did not make the necessary payments on Eurobonds, thus defaulting on the company's Eurobonds occurred.
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 5-year Eurobonds for EUR 600 million with a rate of 7.125% per annum and 3-year Eurobonds for USD 335 million with a rate of 7.375% per annum.
The Naftogaz of Ukraine national joint-stock company is a leading enterprise of the country's fuel and energy complex, which is engaged in prospecting and development of deposits, drilling, transportation and storage of oil and gas, as well as supplying gas to consumers.
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