Naftogaz makes payments under Eurobonds in accordance with restructuring schedule

The relevant statement was made by Naftogaz Group Board Chairman & CEO Oleksiy Chernyshov, an Ukrinform correspondent reports, referring to the company’s press service.

“Under the terms of the restructuring, Naftogaz has made mandatory payments, and the next one is scheduled for November 2024. We are fulfilling our obligations in good faith,” Chernyshov noted.

In his words, getting out of default demonstrates the company’s reliability to international partners and enables Naftogaz to attract new capital investments for its development.

A reminder that, in June 2023, the Cabinet of Ministers of Ukraine approved the restructuring terms for the Eurobonds of Naftogaz of Ukraine NJSC, maturing in July 2022 and November 2026, on which the company had previously reached an agreement with investors.

In July 2022, the Ukrainian government defaulted on Naftogaz’s Eurobond payments by failing to provide permission for the company to fulfill its payment obligations to Eurobond holders for either the 2022 issue or the 2024 issue.

In July 2019, Naftogaz attracted financing on the international capital market, having issued Eurobonds in the amount of EUR 600 million and USD 335 million. The company placed five-year euro-denominated bonds at 7.125% and three-year dollar-denominated bonds at 7.375%. Three months later, in November 2019, Naftogaz of Ukraine NJSC placed seven-year Eurobonds in the amount of USD 500 million at 7.625% per annum. The total value of all three issues of Eurobonds is estimated at about USD 1.5 billion.