10 November 2022, Thursday, 14:41 159

Cabinet Appoints Lazard Freres As Financial Advisor For Restructuring Of Naftogaz Eurobonds

Редактор: Daria Zubkova

The Cabinet of Ministers appointed the Lazard Freres company as a financial advisor for the restructuring of the fulfillment of obligations under Eurobonds due in 2022 and 2026 of the Naftogaz of Ukraine national joint-stock company.

This is stated in government order 1003 of November 8, Ukrainian News Agency reports.

"To approve the actions of Naftogaz of Ukraine with regard to the execution of the current main transaction with Condor Finance, namely the conclusion of an agreement between Naftogaz and the Lazard Freres SAS company regarding the provision of financial advisor services in connection with the restructuring of the fulfillment of obligations under Eurobonds with repayment in 2022 (Tranche B) and 2026," the message states.

Also, within two weeks, Naftogaz must submit to the Cabinet of Ministers the main terms of amendments to the credit agreements dated July 17, 2019 and November 6, 2019, developed for the implementation of this transaction.

As Ukrainian News Agency earlier reported, in August, holders of Eurobonds of Naftogaz of Ukraine agreed to postpone payments for Eurobonds-2024, while 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.

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.