“Economic Truth” reports this, citing a statement by First Deputy Prime Minister and Minister of Energy Denis Shmyhal, who also noted that he expects the deal to be finalized as early as October.
Explaining the need for restructuring, Shmyhal emphasized that completing the restructuring of Ukrenergo’s obligations will create the conditions for restoring substations damaged by Russian shelling and help minimize the burden on the electricity transmission tariff.
The publication notes that back in April 2025, “Ukrenergo” agreed on a debt management plan with a group of investors controlling about 45% of its debt. The plan was scheduled to be completed in early July 2025.
Investors were offered two options:
– a bond buyback at a maximum price of 65.125% of their face value. To fund this, the company plans to raise $430 million in international financing backed by guarantees from a development institution;
– an exchange of the bonds for new, unsecured Ukrenergo securities maturing in 2031 and offering a higher yield of 8.5% per annum.
If any funds remain unspent after the voluntary buyback, they will be used to proportionally buy back or exchange the remaining bonds at a lower price (60%–68.7% of par value).
All investors participating in the buyback or exchange automatically agree to changes in the terms of the bonds and guarantees. Without this consent, the transaction cannot proceed.
The state-owned company Ukrenergo issued $825 million in Eurobonds in early November 2021 at an annual interest rate of 6.7%. The government acted as the guarantor of repayment. The proceeds were earmarked for a specific purpose: to pay off debts owed to renewable energy producers.
In November 2024, the company announced a temporary suspension of payments on its “green” sustainable development bonds.
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