Page 10 - FSU OGM Week 26 2021

FSUOGM INVESTMENT FSUOGM

Naftogaz plans Eurobonds

in the autumn

UKRAINE UKRAINE’S natural gas company Naftogaz is Eurobonds placement may be used by Nafto-
planning to place Eurobonds this autumn if mar- gaz to optimise its loan portfolio. “This money
The funds may be ket conditions are favourable, CEO Yuriy Vit- may be needed to optimise our loan portfolio in

used to optimise renko said in a company press release on June 25. Ukraine. We are going to replace more expensive
the company's loan “One of the few indicators showing investor loans with cheaper Eurobonds, provided that the
portfolio. perceptions of the ongoing changes in Naftogaz situation in the stock market remains favourable.
is quotations for our Eurobonds. What can we We may optimise our portfolio of Eurobonds so
see? Our yields are declining. This means inves- that their maturity could be lengthened in time,
tors view these changes positively. We can expect and the portfolio could feel more comfortable for
quite a successful placement of our Eurobonds the company,” said the Naftogaz CEO.
in the coming autumn. As autumn arrives, we The company may also invest part of the
will decide whether or not we still want to place raised funds in hydrocarbon extraction and
Eurobonds,” Vitrenko said in a statement. energy efficiency. “We are planning to invest, and
He pointed out that the company’s current not only in extraction, but also in other sectors
quotations are roughly equal to the state-owned such as district heating. Our investment efforts
road building agency Ukravtodor, which placed will be focused on energy efficiency. For exam-
a seven year $700m Eurobond on June 17. ple, this might be investments in biomass heat
“If we have look at the quotations of Nafto- generation. Or investments in local heat distri-
gaz Eurobonds, they are now trading at approx- bution stations, which will allow housing co-op-
imately similar levels, even though we don’t have eratives to more efficiently use supplied heat.
any government guarantees, unlike Ukravtodor,” We will be looking into areas that most require
noted Vitrenko. the company’s action to deal with national chal-
Vitrenko said that funds raised through a lenges,” summarised Vitrenko. ™

P10 www. NEWSBASE .com Week 26 30•June•2021