DTEK CEO on holding's Eurobonds: No bad news for investors

DTEK Energy Holding is fully confident in its ability to manage its debt portfolio and intends to continue to treat its creditors responsibly, including holders of Eurobonds issued by individual companies within the holding, stated Maksym Tymchenko, CEO of the energy holding.

"When it comes to bonds, ... there’s no bad news for investors, no haircuts, no problems," he told reporters at a briefing on Friday.

Tymchenko noted that DTEK has a history of successful debt transactions involving Eurobonds issued by its companies. He recalled that the maturity of green bonds issued by DTEK Renewables and DTEK Energy had previously been extended, and a similar transaction is being conducted this year for Eurobonds issued by DTEK Oil & Gas.

"We want to extend the amortization schedule by three to four years to reduce our debt portfolio," the holding’s CEO said.

He recalled that the debt portfolio was reduced by approximately 35% between 2020 and 2024.

Tymchenko also noted the recent full and timely repayment of $428 million in Eurobonds by Metinvest, a sister company (through SCM’s common owner, Rinat Akhmetov), ​​which once again confirmed SCM’s respect for investors and the importance of reputation for all its businesses.

The maturity date of DTEK Neftogaz’ $425 million Eurobonds, issued through NGD Holdings B.V., is December 31, 2026. As of April 30, the company had already received consent to its proposal to extend the repayment period by three years and increase the nominal yield from 6.75% to 9.875% from holders of 88.87% of the bonds, while 90% is required for success.