Ukrenergo suspends payments on green bonds

(MENAFN– UkrinForm) From November 9, 2024, Ukrenergo National Power Company will suspend payments under its outstanding green notes.

The statement in question was made by the company’s press service, reports a correspondent from Ukrinform.

“From November 9, 2024, Ukrenergo National Power Company will suspend payments on its outstanding green banknotes issued under state guarantee in 2021. The suspension takes place in accordance with the Law of Ukraine “On Carrying Out Transactions on Public Debt Guaranteed by the State.” Debt and Municipal Debt and State Derivatives’ and the decisions taken under the above-mentioned law by the Cabinet of Ministers of Ukraine and the Ukrainian Ministry of Energy as the competent management body,” the report said.

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

As emphasized by Ukrenergo, the bondholders are the important partners of the company.

“In 2022, the parties agreed to defer bond payments, which helped support the company during the war and made a meaningful contribution to its financial resilience over the past two years. In the near future, the company plans to enter into discussions with the group of banknote holders to achieve a fair and consensual treatment of the banknotes,” concludes Ukrenergo.

In this regard, Ukrenergo informed its partners and creditors of the suspension of payments under its guaranteed sustainability-linked green banknotes, assuring them of the company’s operational and financial stability.

The Ukrainian Electricity Transmission System Operator continues to fulfill its duties, namely carrying out preparations for the winter season, restoring, arranging protection and increasing the resilience of the country’s integrated energy system in times of war.

A reminder that in November 2021, Ukrenergo National Power Company announced the placement of its debut 5-year green and sustainability-linked Eurobonds worth $825 million at a yield of 6.875%. The proceeds were used to pay off the debt to Guaranteed Buyer State Enterprise.