The EBRD bought Naftogaz Eurobonds for €120 million

The European Bank for Reconstruction and Development (EBRD) acquired 1/5 (for €120 million) of 5-year Eurobonds issued by Naftogaz in the amount of €600 million, Interfax reports.

The EBRD notes that NJSC will use proceeds on Eurobonds for general corporate purposes, including financing gas purchases. At the same time, the bank financing will be allocated exclusively to purchase gas for the upcoming 2019/20 heating season.

On July 12, NJSC Naftogaz of Ukraine placed five-year bonds in euros with a yield of 7.125% and three-year bonds in US dollars with a yield of 7.375%.

Earlier in the company stated the need to urgently raise funds for the accumulation of 20 billion cubic meters of gas in storage facilities by winter to be ready for Gazprom’s possible termination of transit from January 1, 2020.

Tags: gas, Naftogaz, contracts, Kobolyev, EBRD, legislation, UGSF, gas transit, foreign affairs

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