NJSC Naftogaz Ukrainy, through the issuer of its eurobonds, Kondor Finance plc, has approached the holders of these securities in the amount of almost $1.5 billion with a proposal to defer coupon payments on them for two years, including postponing the repayment of 2022 eurobonds for $335 million for the same period.

"In light of the protracted circumstances affecting Ukraine as a result of Russia's ongoing full-scale military intervention and its impact on Ukraine's energy security, the issuer, at the request of the borrower, has initiated this consent request in order to obtain the approval of the noteholders to facilitate the borrower's retention of available cash to support Ukraine's strategic priorities," according to the stock exchange report.

As reported, there are currently three issues of Naftogaz eurobonds circulating on the market, all of which were placed in 2019: in July – three-year for $335 million at 7.375% and five-year for EUR 600 million at 7.125% (one fifth of the eurobonds were bought by the EBRD), and in November – 7-year for $500 million with a yield of 7.625%. The maturity date for the $335 million issue is July 18, 2022.

Naftogaz proposes to pay all coupons on 2022 and 2024 eurobonds on July 19, 2024 and redeem 2022 eurobonds on the same day. And the company would like to pay coupons for 2026 eurobonds on November 8, 2024.

Earlier, the Cabinet of Ministers of Ukraine, by order No. 554-r dated July 7, 2022, allowed Naftogaz to change credit conditions with the issuer of three issues of its eurobonds, Kondor Finance plc, on the eve of the redemption of one of them for $335 million.