Metinvest Mining and Metallurgical Group has announced a tender offer to buy back up to $70 million of its Eurobonds due 2025 and 2026.
According to a stock exchange announcement by Metinvest B.V., the 2025 Eurobonds will be redeemed at a price ranging from 85% to 92% of the face value, depending on the results of the Dutch auction, while the redemption price of the 2026 bonds has not been determined and will depend on the results of the auction.
The bonds will be purchased for cash.
The offer is valid from April 29, 2024 and expires at 16:00 London time on May 8, 2024.
The Eurobonds due June 17, 2025 were issued in the amount of EUR300 million with a coupon of 5.625%, and the Eurobonds due April 23, 2026 were issued in the amount of $505 million with a coupon of 8.5%. Currently, they are outstanding by $234.195 million and $493.871 million, respectively.
“The rationale for the offer (to repurchase – IF-U) is to use the group’s liquidity outside Ukraine to actively manage the company’s debt burden, mitigate cash outflows for debt service, improve the group’s overall debt position, and reduce liquidity pressure in relation to the upcoming maturities of the 2025 bonds and 2026 bonds, given the group’s continued turbulent operating environment,” the tender offer explains.
It adds that the ongoing war in Ukraine, coupled with volatile commodity prices, presents unprecedented challenges for the company and its subsidiaries.
In addition, although as at 31 December 2023 the company and its subsidiaries outside Ukraine had sufficient cash balances to meet the company’s scheduled interest payment obligations for the foreseeable future, there are certain restrictions on the transfer of cash from its Ukrainian subsidiaries in accordance with the current decisions of the National Bank of Ukraine. And there is no guarantee that these restrictions will be lifted, the document says.
In turn, the proposals give bondholders the opportunity to reduce their risks in the context of the ongoing war. The group’s operations remain subject to a number of risks that are beyond management’s control, including, in particular, an increase in the intensity of Russian attacks on the front line; escalation of attacks on Ukraine’s energy facilities and, as a result, disruption of the availability of the energy system for the group’s operations; uncertainty about the sustainability of Black Sea shipping; staff shortages due to mobilization in Ukraine; and volatile prices for key products.
These risks may adversely affect the price of Eurobonds in the future, the tender justification states.
“Metinvest is a vertically integrated group of steel and mining companies. Its businesses are located in Ukraine – in Donetsk, Luhansk, Zaporizhzhia and Dnipro regions – as well as in the European Union, the United Kingdom and the United States.
The main shareholders of the holding are SCM Group (71.24%) and Smart Holding (23.76%), which jointly manage it.
Metinvest Holding LLC is the management company of Metinvest Group.
State enterprise “International Airport “Boryspil” (Kiev) on April 25 announced a tender for the purchase of services of compulsory insurance of civil liability of owners of land vehicles (OSAGO), reported in the system of electronic public procurement Prozorro.
As noted, the expected cost of the purchase of services is UAH 157 thousand.
Security of the tender offer is not required.
The deadline for submission of bids is May 3
On April 22, Ukraine State Aviation Enterprise (Boryspil, Kyiv region) announced a tender for insurance of the liability of the operator of a commercial civil aircraft for damage caused to third parties and the liability of the air carrier for damage caused to passengers and baggage; aircraft insurance.
According to a posting in the Prozorro electronic public procurement system, the tender was announced for insurance of aircraft crew members, other aviation personnel and persons who have the right to be on board the aircraft legally without purchasing tickets.
The expected value of the insurance procurement is UAH 26.674 million.
The amount of the contract performance security is 5% of the value of the procurement contract, in monetary terms, in UAH.
The deadline for submitting bids is April 30.
Ukraine State Aviation Enterprise was established to organize, provide and perform special air transportation of high-ranking official delegations of Ukraine and other states within the country and abroad in compliance with the requirements and rules set forth in the relevant regulatory documents.
Aviation Enterprise, BUDGET, risk insurance, TENDER, UKRAINE
On April 5, Ukrhydroenergo announced a tender for voluntary motor vehicle insurance (CASCO) for the branches of the Cascade of Kyiv HPPs and PSPs, according to the Prozorro electronic public procurement system.
The expected value of the insurance services procurement is UAH 192.041 thousand.
The deadline for submitting documents for the tender is April 15.
“Ukrhydroenergo operates all major hydroelectric power plants located on the Ukrainian sections of the Dnipro and Dniester rivers. The total installed capacity of the company’s hydroelectric power plants is 5,744.8 MW. The state, represented by the Ministry of Energy, owns 100% of the company’s shares.
hull insurance, hydroelectric power plants, motor vehicle insurance, Prozorro, PSPPs, TENDER, UKRHYDROENERGO
Avtomagistral-Pivden LLC has won a tender for the construction of a transport interchange in Mykolaiv region with a bid of UAH 1.936 billion.
According to the announcement on Prozorro, the customer was the Service for Infrastructure Restoration and Development in Mykolaiv region. The expected cost of the works was UAH 2.28 billion.
The Eurotransmost consortium also participated in the tender with a final offer of UAH 1.937 billion.
The works under the tender include the construction of an interchange at different levels across the Southern Bug in Mykolaiv to the public road of national importance M-14 (Odesa-Melitopol-Novoazovsk). The length of the road surface is 8.3 km. The expected completion date is April 30, 2025.
According to Prozorro, the tender was held on February 8, and on March 6, Avtomagistral-Pivden published a notice of intent to conclude a contract based on the results of the tender.
Avtomagistral-Pivden LLC has been on the market since 2004. It designs and builds highways, bridges, interchanges, airfield complexes, and hydraulic structures. The company’s owner is listed in Opendatabot as Oleksandr Boyko. According to the financial results for 2022, the company’s net profit amounted to UAH 241.9 million, and net income was UAH 7.5 billion.
The Ukrainian state postal service enterprise Ukrposhta (Kyiv) announced a tender for compulsory insurance of drivers against transport accidents on January 31, according to the ProZorro electronic public procurement system.
According to the system, the expected cost of the services is UAH 771.375 thousand.
The deadline for submitting bids is February 8.
