Naftogaz returns to the market with a USD 500 million 7-year Eurobonds at 7.625% p.a.

Yesterday, Naftogaz of Ukraine successfully priced a 7-year Eurobond for a USD 500 million size. The senior unsecured bond is issued under 144A/Reg S format and carries an interest of 7.625% payable semiannually

Yesterday, Naftogaz of Ukraine successfully priced a 7-year Eurobond for a USD 500 million size. The senior unsecured bond is issued under 144A/Reg S format and carries an interest of 7.625% payable semiannually. The Eurobond is (subject to, inter alia, the satisfaction of conditions precedent) to be issued by Kondor Finance plc for the sole purpose of making a U.S.$500 million loan to Naftogaz.

The re-offer yield reflects a 127 bp premium to Ukraine’s sovereign debt due in 2026, the lowest spread to sovereign achieved by Ukrainian stated-owned companies this year.

The Eurobond does not have a state guarantee. Fitch has rated Naftogaz at B (with positive outlook), with notes also expected to be rated at B; at the same level of Ukraine’s sovereign rating.

The orderbook peaked at almost 2.9 times oversubscription. Worldwide investors from the US, UK, Switzerland, Germany, & other EU Member States; Asia or Middle East have participated on the offering.

“We are inspired with investors’ high interest to Naftogaz’ securities. Our efforts to reform the company and the Ukrainian gas market help us reduce our financing costs and compete more effectively,” said Andriy Kobolyev, CEO of Naftogaz.

The company expects to see the funds on 8 November, following the completion of legal formalities.

Citi acted as sole bookrunner on the issue. Freshfields Bruckhaus Deringer, AEQUO, White & Case, Avellum, Linklaters, Allen&Overy acted as legal counsels on the offering.

In July 2019, Naftogaz had previously placed a 3-year USD 335 million Eurobond issue, with the approximate spread to sovereign standing around ~150 bp, respectively.

Investor contact: [email protected].

The Eurobonds referred to in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.


NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN

Communications Department
NJSC Naftogaz of Ukraine





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