Ukrenergo suspends payments on green bonds
The relevant statement was made by the company’s press service, an Ukrinform correspondent reports.
“From November 9, 2024, Ukrenergo National Power Company will suspend payments on its outstanding green notes issued under a state guarantee in 2021. The suspension takes place in accordance with the Law of Ukraine ‘On Carrying Out Transactions with State Debt, State-Guaranteed Debt and Municipal Debt and State Derivatives’ and the decisions made pursuant to the above law by the Cabinet of Ministers of Ukraine and the Ukrainian Energy Ministry as the authorized management body,” the report states.
The suspension of bond payments in accordance with the law will last until the restructuring process is completed. In cooperation with the Ukrainian government, Ukrenergo is taking necessary measures to reach an agreement with noteholders in the coming months.
As emphasized by Ukrenergo, the noteholders are the important partners of the company.
“In 2022, the parties agreed on the deferral of bond payments, which helped support the company amid the war and contributed meaningfully to its financial resilience for the past two years. In the near future, the company intends to engage with the group of holders of the notes to agree a fair and consensual treatment of the notes,” Ukrenergo concluded.
In this regard, Ukrenergo informed its partners and creditors about the suspension of payments under its guaranteed sustainability-linked green notes, as well as assured them of the company’s operational and financial stability.
Ukraine’s power transmission system operator continues to perform its duties, namely to carry out preparations for the winter season, restore, arrange the protection and enhance the resilience of the country’s integrated energy system in the wartime conditions.
A reminder that, in November 2021, Ukrenergo National Power Company announced the placement of its debut 5-year Green and Sustainability-Linked Eurobonds worth USD 825 million at a yield of 6.875%. The proceeds were used to repay the debt to Guaranteed Buyer State Enterprise.
