Eurobond holders of the Naftogaz of Ukraine national joint-stock company have rejected the company's second proposal to postpone payments for two years.
That follows from a statement by Reuters, Ukrainian News Agency reports.
In particular, holders of Eurobonds rejected the company's request for an extension for the second time, as less than 20% of holders of Eurobonds maturing in July 2022 supported the offer.
Regarding the other two issues of Eurobonds maturing in 2024 and 2026, insufficient number of their holders voted for the plan proposed by Naftogaz, so the process was postponed and will resume on August 31.
In particular, with respect to the 2024 Eurobonds, the quorum present was approximately 49% of the total principal amount, with approximately 74% of the votes cast in favor of the two-year payment deferral plan.
For Eurobonds 2026, the quorum present was approximately 54% of the total principal, but only 43% of the votes were cast in favor of the deal.
As reported by Ukrainian News Agency, on July 26, Naftogaz did not make the necessary payments on Eurobonds, thus defaulting on the company's Eurobonds occurred.
At the same time, the company offered holders of Eurobonds a new agreement to postpone payments.
In November 2019, Naftogaz placed 7-year Eurobonds in the amount of USD 500 million dollars 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.
Naftogaz is a leading enterprise of the country's fuel and energy complex, which is engaged in the exploration and development of deposits, drilling, transportation and storage of oil and gas, as well as supplying gas to consumers.
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