Naftogaz has postponed its up to USD 1bn Eurobond issue because of the volatile market conditions and elevated funding levels. “We do not believe it is reasonable for Naftogaz to borrow at the current pricing levels. We are grateful for the high investor interest and look forward to returning to the market in the future,” commented Naftogaz CEO Andriy Kobolyev. Naftogaz will continue to monitor the markets and will consider re-engaging with investors as conditions improve.
The Cabinet of Ministers of Ukraine approved the emission of five-year Eurobonds by Naftogaz on 24 October. Citi and Deutsche Bank are appointed joint lead managers on the deal.
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Notes to Editors:
Naftogaz is the national oil and gas company of Ukraine. It is 100% state-owned and subordinated to the Cabinet of Ministers of Ukraine. The group is a major player in extraction, transportation, storage and refinement of natural gas and crude oil. In 2017, Naftogaz group supplied 17.4 billion of cubic meters (bcm), produced 16.4 bcm, imported 8.7 bcm, transmitted 93.5 bcm of gas and extracted 1.9 mt of crude oil. The group competes with private producers and importers in gas supply to commercial and industrial consumers. It also carries out public service obligations to provide gas for socially protected consumers. The group advocates a complete liberalization of the Ukrainian gas market and its full integration with the gas market of the European Union. Ukrtransgaz, the gas transmission and storage subsidiary of Naftogaz, delivers about 50% of Russian gas supplies to Europe. Naftogaz and the government of Ukraine are in the process of unbundling the gas transmission function from Naftogaz group in line with the requirements of the Third Energy Package of the European Union.
NJSC Naftogaz of Ukraine