Issue of $1 Billion Eurobonds from “Naftogaz” in 2022

by Olha Povaliaieva
Friday, December 24, 2021
Issue of $1 Billion Eurobonds from “Naftogaz” in 2022

The state company of Ukraine for the extraction, transportation, and processing of oil and natural gas plans to enter the borrowing market

"In May next year, we design, in particular, to issue eurobonds. For this, the company must be consistently profitable. The introduction of European legislation on the country's gas market should also be completed. For example, the norms related to the gas transportation system code," said Yurii Vytrenko, chairman of the board of Naftogaz of Ukraine.

Let us remind you that three issues of Naftogaz eurobonds are currently circulating on the market. All of them were posted in 2019:

  • July — three-year for $335 mln at 7.375%;
  • Five-year for €600 mln at 7.125% (a fifth of the bonds in euros was bought by the EBRD);
  • November — 7-year $500 mln with a 7.625% yield.

In October last year, Naftogaz wanted to redeem $335 mln in dollar-denominated eurobonds, primarily with maturity in 2022, by issuing new seven-year Eurobonds. However, he refused to place new securities at 8.95% and redeem them.

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