Naftogaz debt restructuring on Eurobonds should be completed by late July - CEO

Oleksiy Chernyshov, head of Naftogaz Group, announced this on Facebook, Ukrinform reports.

"We have good news: agreements have been reached on ways to restructure Eurobonds maturing in 2022/2026. During the meeting, investors were offered detailed restructuring proposals approved by the company board and supervisory board. Restructuring should be completed by the end of July 2023," he said.

Chernyshov clarified that in close dialogue with all owners of Eurobonds, it was possible to find the most optimal solutions for both investors and the Group. The relevant proposals are yet to be approved by the Cabinet of Ministers of Ukraine as a shareholder of Naftogaz Group.

As reported, in July 2019, Naftogaz attracted financing on the international capital market through the issue of Eurobonds in the amount of EUR 600 million and $335 million. The company placed five-year bonds in euros with a yield of 7.125% and three-year bonds in dollars at 7.375%.

Three months later, in November, Naftogaz placed 7-year Eurobonds in the amount of $500 million at 7.625% per annum. The total volume of all three issues is estimated at about $1.5 billion.

As early as July 2022, the government defaulted on Naftogaz Eurobonds, not allowing the fulfillment of obligations to Eurobond holders to make the necessary payments on principal and interest (for the 2022 issue) and interest (for the 2024 issue).

On March 10, 2023, Naftogaz offered investors a new scenario for the restructuring of its debt obligations under Eurobonds maturing in 2022 and 2026.