(KYIV, UKRAINE) – Ukraine’s state energy company Naftogaz has successfully restructured nearly €1.2 billion worth of eurobonds, securing extended repayment terms with the backing of an overwhelming majority of its bondholders.
The Naftogaz Group confirmed that it had restructured two issues of eurobonds with a combined value of approximately €1.2 billion ($1.31 billion, or £1.03 billion). Over 90 percent of holders of each bond series voted in favour of the arrangement.
The restructuring covered outstanding bonds denominated in euros and US dollars that were issued by Naftogaz through Kondor Finance plc.
The company said the agreement was reached in two stages. The first involved discussions with a specially formed group of international bondholders, known as an ad hoc group. The second stage was carried out through a formal consent solicitation process, which included all bondholders without exception. As a result, the maturity date for the euro denominated bonds has been extended to 2032, while the dollar denominated bonds now mature in 2033.
Serhiy Koretsky, chairman of the board of Naftogaz of Ukraine, said the restructuring gives the company more room to direct additional resources towards repairing infrastructure damaged by Russian attacks and preparing for the winter heating season. He noted that Russia has launched around 250 attacks on energy infrastructure this year alone.
The company described the restructuring as one of the key steps in securing the financial stability of the Naftogaz Group, given the conditions of the full scale war and the systematic attacks on Ukraine’s energy system. Naftogaz said it continues to meet its obligations to the state and to consumers while getting ready for the next heating season.
The restructuring follows a decision in June 2023 by the Cabinet of Ministers to approve the terms for restructuring Naftogaz eurobonds that had maturity dates in July 2022 and November 2026, after the company reached agreement with investors.
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