National Joint Stock Company “Naftogaz of Ukraine” has succeeded in negotiations with the holders of its Eurobonds due in July 2024 — 77% of investors voted “yea” and consented to the proposal to postpone payments for 2 years.
Thus, the company may pay off its principal debt of EUR 600 million not in 2024, but in 2026, and it will start paying interest on it in 2024.
The interest deferred during 2022-2024 amounts to EUR 90 million (EUR 45 million per year, payable in July each year).
“We are grateful to our investors for their understanding of the situation Ukraine is in today. The decision to postpone is an important step forward, which we appreciate,” said Yuriy Vitrenko, Chief Executive Officer of National Joint Stock Company “Naftogaz of Ukraine”.
As required by the CMU Instruction No. 625-r dated 21 July 2022, the company has already request the Cabinet of Ministers of Ukraine to approve the relevant transaction in order to properly see through the consent solicitation addressed to the holders of its 2024 Eurobonds.
Holders of Eurobonds due in November 2026 did not support at the adjourned meeting the new proposal to amend the terms of the national company’s debt obligations.
The terms of the Naftogaz proposal rejected by the investors were determined by the Cabinet of Ministers, in particular, the Ministry of Finance, as required by the CMU Instruction No. 625-r dated 21 July 2022. The conditions offered to the Eurobonds holders by the national company corresponded to the conditions of the consent solicitation proposal regarding the postponement of payments on sovereign Eurobonds of Ukraine.
We remind that on 17 August 2022, investors who own Eurobonds maturing in July 2022 rejected Naftogaz’s proposal to postpone the repayment.
In the near future, Naftogaz will address the Cabinet of Ministers with a proposal to develop a joint position regarding the next steps to restructure the company’s Eurobonds.