Naftogaz is restructuring its debt again: what will happen to the Eurobonds?
9 June 23:24
The Naftogaz Group has reached an agreement in principle on a new restructuring of its Eurobonds, with total liabilities of approximately €1.2 billion. This was reported on the company’s website, according to "Komersant Ukrainian".
The company has agreed on terms with a special committee of holders of two series of Eurobonds, which will allow it to defer commercial debt payments for several years.
Under the terms of the agreement, the maturity date for the euro-denominated bond series will be extended to January 2032, and for the dollar-denominated series—to January 2033.
Which Eurobonds are being restructured
The agreements concern two issues of Eurobonds that Naftogaz of Ukraine issued through the special purpose vehicle Kondor Finance plc.
These are:
- syndicated loan participation notes with a current principal amount of €695 million, whose original maturity date was 2024 but had previously been extended to July 19, 2026;
- participation bonds in a loan with a current principal amount of $584 million, originally due in 2026, but previously extended to November 8, 2028.
The company has now agreed to another extension—to 2032 and 2033, respectively.
Watch us on YouTube: important topics – without censorship
What the new restructuring means for Naftogaz
The new agreement effectively gives Naftogaz more time to meet its debt obligations to investors.
For one of Ukraine’s largest state-owned companies, this means the opportunity to reduce its short-term financial burden and avoid pressure in the coming years amid the war, energy security costs, and the need to finance gas purchases.
In other words, the company has bought time to spread the repayment of a large commercial debt over a longer period.
This is not the first restructuring
The previous restructuring of these Eurobonds was agreed upon as early as late July 2023. At that time, Naftogaz also agreed to extend the repayment terms of its obligations.
The new agreement is a continuation of this process and indicates that the company continues to seek mechanisms to stabilize its debt burden and balance financial risks.
Naftogaz remains one of the key companies in the Ukrainian energy sector. Any decisions regarding its debt are significant not only for the group itself but also for the state as a whole, as they concern the stability of the largest player in the energy sector.
The restructuring of Eurobonds allows the company to avoid severe pressure on liquidity in the coming years and focus on current tasks—getting through the heating seasons, procuring resources, and maintaining the power grid amid the war.
Read us on Telegram: important topics – without censorship
