Ukrenergo Suspends Green Bond Payments

(MENAFN– UkrinForm) Starting from November 9, 2024, Ukrenergo National Energy Company will suspend payments under outstanding green banknotes.

According to a Ukrinform correspondent, the relevant statement was made by the company’s press service.

“From November 9, 2024, Ukrenergo National Power Company will suspend payments on its outstanding green banknotes issued under state guarantee in 2021. The suspension is carried out in accordance with the Law of Ukraine ‘On the Conduct of State-Guaranteed Transactions with State Debts’. The report includes the following statements: “Debt and Municipal Debts and State Derivatives” and decisions taken by the authorized management body of the Cabinet of Ministers of Ukraine and the Ministry of Energy of Ukraine in accordance with the above law. .

In accordance with the law, the suspension of bond payments will continue until the restructuring process is completed. Ukrenergo, in cooperation with the Ukrainian government, is taking the necessary measures to reach an agreement with bondholders in the coming months.

As Ukrenergo emphasizes, bondholders are important partners of the company.

“In 2022, the parties agreed to postpone bond payments; this helped support the company during the war and has contributed significantly to its financial resilience over the last two years. In the near future, the company plans to contact the group of holders of the banknotes to agree on a fair and consensual handling of the banknotes,” concluded Ukrenergo.

In this context, Ukrenergo informed its partners and creditors about the suspension of payments under its guaranteed sustainability-linked green bonds and assured them of the operational and financial stability of the company.

Ukraine’s energy transmission system operator continues to fulfill its duties, such as carrying out preparations for the winter season, repairing, protecting and increasing the durability of the country’s integrated energy system under war conditions.

We would like to remind you that Ukrenergo National Power Company announced in November 2021 that it will sell its first 5-year Green and Sustainability-Linked Eurobonds worth USD 825 million with a yield of 6.875%. The proceeds were used to pay off the debt to the Guaranteed Recipient State Enterprise.