17:20 20.10.2020

Naftogaz CFO explains postponement of LPN placement by investors' reaction on negative news from Ukraine

2 min read
Naftogaz CFO explains postponement of LPN placement by investors' reaction on negative news from Ukraine

A series of negative news from Ukraine recently influenced the fact that the ratio between the risk of investing in eurobonds of Naftogaz Ukrainy and the yield was not optimal, so Naftogaz decided to postpone the placement, Chief Financial Officer (CFO) Peter van Driel has said.

"When it is one incident you can digest, when there are two it's already hard, when there is a whole sequence of different incidents, the market votes with its own feet... All this bad news influenced the decision of international investors," he said during the Energy Inside discussion on Tuesday.

Among such negative news and incidents, van Driel, in particular, called the resignation of the governor of the National Bank of Ukraine and the accusations of the State Audit Service against Naftogaz about losses of UAH 75.5 billion, which the company called groundless.

At the same time, the CFO said that the demand for eurobonds was significant. "Investors have declared their interest in investing in Naftogaz, the Ukrainian company that they know very well," he said.

According to him, on October 19, in the course of negotiations with investors on the placement of the notes, it became clear that they had doubts about the environment in Ukraine and its negative perception.

"International investors have a choice of where to invest their money. Yesterday we saw that this environment was not attractive enough for them," van Driel said.

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