NJSC Naftogaz of Ukraine places 7-year Eurobonds for $500 million with a profitability of 7.625%. This was reported by the press service.
“The company will pay interest twice a year, in May and November. The issue is a priority unsecured debt, has no government guarantees and is regulated in accordance with the requirements of 144A/Reg S. Fitch Ratings assigned Naftogaz a long-term credit rating B with a positive forecast, which corresponds to the sovereign rating of Ukraine. Eurobonds are issued by Kondor Finance plc with the aim of providing a loan for Naftogaz for $500 million”, the statement said.
Institutional investors from the USA, Great Britain and other EU countries, as well as from Asia and South America became buyers of Eurobonds.
“We are positively impressed by the high interest of investors in the securities of Naftogaz. This is another confirmation that efforts to reform the company and the gas market were not in vain. Thanks to them, the company reduces the cost of its loan portfolio, which will allow Naftogaz to effectively compete in the Ukrainian market”, said Andriy Kobolyev, Chairman of the Board of Naftogaz.
The funds raised should arrive on November 8, after completion of standard legal procedures.
Recall that in July, the EBRD bought Naftogaz’s Eurobonds for €120 million.