Naftogaz to receive first four letters of credit for $500 mln by end of week

14:44, 22.02.2017 1 min read

National joint-stock company Naftogaz Ukrainy by the end of this week will receive first four letters of credits as part of the $500 million loan, Board Chairman of Ukrainian Citibank Steven Fisher.

"The loan is active and the first four letters of credit will be issued this Friday," he told reporters in Kyiv on Wednesday.

He did not disclose the sum of the letters of credit.

As reported, on December 30, 2016 Naftogaz Ukrainy signed with Citi and Deutsche Bank a loan agreement for a euro-denominated credit facility for gas purchase in the equivalent of $500 million secured by the World Bank. The facility is secured by the World Bank's guarantee, which, in turn, is secured by the sovereign guarantee issued as part of the formation of the energy fund according to resolution No. 876 of the Cabinet of Ministers of Ukraine dated November 30, 2016 on the provision of the International Bank for Reconstruction and Development with the sovereign guarantee under obligations of Naftogaz Ukrainy.