Authorization
According to NPC Ukrenergo, the company has successfully priced a debut 5-year Green and Sustainability-linked Eurobond for a USD 825 million size at 6.875% yield. Settlement of the Eurobonds is expected to take place on 9 November 2021. As part of the issuance, the order book was oversubscribed almost three times, indicating strong interest from international investors in Ukrenergo’s inaugural Eurobond.
Ukrenergo’s Eurobond is the largest debut international bond offering ever done by a Ukrainian non-sovereign issuer as well as the largest green Eurobond so far out of Ukraine and the CIS region. Principally, such amount will be used by Ukrenergo for the repayment of debt owed to the Guaranteed Buyer, with any remaining proceeds after repayment of the debt owed to the Guaranteed Buyer used to finance or re-finance other eligible green projects.
Volodymyr Kudrytskyi, Chairman of the Management Board of NPC Ukrenergo said: “Today marks an important milestone in Ukrenergo’s history. We managed to achieve the landmark Eurobond transaction with an innovative Green and Sustainability-Linked structure in the global capital markets which also becomes an important benchmark for Ukrainian issuers. More importantly, the transaction marks a critical step towards resolution of the electricity market imbalances in Ukraine in line with Ukraine’s obligations to renewable energy producers.”
Rothschild & Cie and FinPoint acted as financial and sustainability advisors to Ukrenergo. BNP Paribas, Deutsche Bank and Goldman Sachs International acted as joint lead managers and bookrunners as well as joint ESG structuring agents on the transaction and Ukreximbank served as co-manager. The European Bank for Reconstruction and Development (EBRD) has announced the investment of US$75 million in the sustainability-linked bond issued by NPC Ukrenergo.
We also would like to recall that, on 11 October 2021, the Cabinet of Ministers adopted Resolution №1049, which approved state guarantee for securing obligations under a loan to be attracted by NPC Ukrenergo via issuing and placement of bonds at international financial markets in order maintain its liquidity and stable work (the borrowings). Before issuing the state guarantee PrJSC “NPC “Ukrenergo” should have approved the borrowings with the Ministry of Finance and enter into the agreement with this Ministry in respect of debt settlement to the state under guarantee obligations. On 5 November 2021, the NEURC adopted the Resolution on Signing Agreement on Measures to Ensure the Fulfillment of Obligations under the agreement on Repayment of NPC Ukrenergo’s debts to the State for Fulfilment of Guaranteed Obligations
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