Ukrenergo asks to defer $825 mln eurobonds maturity date from Nov 2026 to Nov 2028
NPC Ukrenergo has announced a proposal to investors to change the terms of the issuance of Green and Sustainability-linked bonds worth $825 million with a yield of 6.875% and maturing in November 2026, the company has said.
According to a company's report on its website on Thursday, in particular, it is proposed to postpone the maturity date of eurobonds by 24 months – to November 2028.
Coupon payments on eurobonds, which are paid within 24 months, starting from the next interest payment date, are also proposed to be postponed to 2028, NPC Ukrenergo said.
At the same time, the deferral is proposed on the terms of continuing the accrual of interest at a coupon rate of 6.875% and with the possibility of capitalization of deferred amounts at the end of this period.
According to Board Chairman of Ukrenergo Volodymyr Kudrytsky, who is quoted in the report, the decision of investors is expected by August 9.
"We propose to defer the payment of the bond coupon for two years – from 2026 to 2028, and also to postpone the maturity date of the bonds to November 2028. After the change in the terms of the issue, the bonds will still be covered by the state guarantee, about which there is already an official decision Cabinet of Ministers," Kudrytsky wrote on Facebook on Thursday.
He said that this step will significantly help Ukrenergo to provide support for the energy sector of Ukraine in the face of a full-scale war waged by Russia against it.
"In close coordination with the government of Ukraine, we are working to collect funds for preparations for the heating season… And together with the government and other energy companies, we will join forces so that the next, most difficult winter in the history of Ukraine, everyone has light in our homes," he said.
At the same time, he expressed hope that the company's reputation and impeccable fulfillment of financial obligations in the past will allow it to obtain the consent of investors.
According to Ukrenergo's announcement on the London Stock Exchange, the request for investor consent expires at 17:00 New York time on August 9, 2022, the announcement is scheduled for August 10 or immediately after the request expires.
