Eleven companies can participate in Naftogaz tenders for gas purchase for EBRD funds
The European Bank for Reconstruction and Development (EBRD) has published a list of 11 companies that have received the right to participate in tenders for the purchase of natural gas of Naftogaz Ukrainy for the funds raised from the bank as part of eurobond placement in 2019.
According to the company's press release, Naftogaz may use up to EUR120 million for the purchase of gas from pre-selected European suppliers for this project.
The list of suppliers that passed preliminary selection and were agreed by the EBRD includes CEZ a.s. (the Czech Republic), Alpiq Energy SE (the Czech Republic), MET Gas and Energy Marketing, Axpo Solutions AG, DXT Commodities SA (all Switzerland), Uniper Global Commodities SE, RWE Supply and Trading GmbH (both based in Germany), ENGIE SA (France), EDF Trading Limited, Shell Energy Europe Ltd., GHG Emissions Traders and Consultants Ltd. (all are in the UK).
As reported, in July 2019 Naftogaz placed three-year eurobonds for $335 million and five-year eurobonds for EUR600 million. The yield of the dollar issue was 7.375%, the yield of the issue in euros was 7.125%. The EBRD acted as a major buyer of the tranche in euros (acquired one fifth). The company then stated that it needed funds to accumulate an increased amount of gas in storage facilities by winter in order to be ready for Gazprom's terminating transit from January 1, 2020 and to strengthen its position in negotiations with the Russian gas monopolist.