The State Agency for Highways of Ukraine (Ukravtodor), which placed its debut Eurobonds worth $700 million at a rate of 6.25% last June under state guarantees, after Ukraine announced a proposal for a two-year deferral of payments on its Eurobonds, is now time is also evaluating options for managing its obligations.
“After this assessment is completed, it is likely that bonds will be followed by a similar liability management exercise in the near future,” Ukravtodor said in a London Stock Exchange announcement on Monday.
Ukraine, in its offer to holders of its sovereign bonds to defer payments on them for two years, indicated that it expects a similar offer from state NPCs Ukrenergo and Ukravtodor for their Eurobonds issued under state guarantees.
In November last year, Ukrenergo placed, under state guarantees, debut five-year “green” Eurobonds worth $825 million with a yield of 6.875% and interest payments twice a year. The proceeds from the issue of Eurobonds were used to pay for electricity produced by RES generation.
As reported, on July 20, Ukraine proposed to holders of Eurobonds from August 1 to defer all payments on them and maturities for two years, while maintaining the current rates of return.
In addition, Ukraine’s international partners within the G7 and the Paris Club of creditors announced their readiness to suspend the payment of Ukraine’s debt until the end of 2023 with the possibility of extending the deferment for another year. They also urged private lenders to accept Ukraine’s offer to defer payments on its Eurobonds and change the terms of its GDP warrants.
According to the website of the Frankfurt Stock Exchange, on Friday, July 22, Eurobonds of Ukravtodor were quoted at a price of 17.64% of the face value, which is slightly lower than the quotations of sovereign Eurobonds of the same maturity year (about 20%).
