Holders of Eurobonds of the Naftogaz of Ukraine national joint stock company agreed to delay payments on Eurobonds-2024, while holders of Eurobonds-2026 did not support the company's proposal to delay payments.
The company has said this in a statement, Ukrainian News Agency reports.
"NJSC Naftogaz of Ukraine successfully held negotiations with holders of Eurobonds, the maturity of which comes in July 2024, - 77% of investors voted in favor and agreed to a proposal to delay payments for 2 years. Thus, the company can pay a debt volume of EUR 600 million not in 2024, but in 2026, and will begin to pay interest on it in 2024. The amount of interest deferred during 2022-2024 is EUR 90 million (EUR 45 million euros per year, due in July each year)," the statement said.
According to the report, the company asked the Cabinet of Ministers to agree on an appropriate transaction to properly complete the request to holders of Eurobonds maturing in 2024.
Eurobond holders, due in November 2026, did not support the new proposal for changes to the terms of the company's debt obligations at the repeated meeting.
"The terms of the proposal rejected by investors of Naftogaz were determined by the Cabinet of Ministers, in particular by the Ministry of Finance, as required by the order of the Cabinet of Ministers No. 625-r of July 21, 2022. The conditions proposed to the holders of Eurobonds by the national company corresponded to the conditions of the offer to investors to postpone payments on sovereign Eurobonds of Ukraine. We remind you that on August 17, 2022, investors who are owners of Eurobonds maturing in July 2022 rejected Naftogaz's offer to postpone payments," the statement said.
According to the report, in the near future, Naftogaz will appeal to the government with a proposal to develop a joint position on further actions to restructure the company's Eurobonds.
As Ukrainian News Agency earlier reported, in August, holders of Naftogaz Eurobonds repaid in July 2022 rejected the company's second offer to postpone payments for two years.
On July 26, Naftogaz did not make the necessary payments on Eurobonds-2022, thus, there was a default on the company's Eurobonds.
In November 2019, Naftogaz placed 7-year Eurobonds worth USD 500 million at 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.
NJSC Naftogaz of Ukraine is a leading enterprise of the fuel and energy complex of the country, which is engaged in exploration and development of fields, drilling, transportation and storage of oil and gas, as well as supply of gas to consumers.
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