Page 55 - UKRRptNov20

These include bringing on line a new oilseed processing plant in Western Ukraine, completion of several biogas energy plants and increasing the capacity of Kernel’s new TransGrainTerminal trans shipment complex in Chornomorsk sea port. S&P just upgraded Kernel to one notch above teh sovereign rating.
Naftogaz​ of Ukraine initiated on October 14 a tender offer for its $335mn bond maturing in July 2022 and €600mn notes maturing in July 2024​. The maximum amount to be purchased is initially set at $335mn of par value of the bonds, with priority given to the shorter notes. The tender price for the 2022 notes is 100.875% of par, and for the 2024 notes is 96.25% of par, or a slight discount to market as of October 13. The company is offering also an early tender premium of 2.0% of par for each bond, making the total early offer price above the market. The early tender deadline is October 27 and final deadline is November 10. The purpose of this debt operation is to extend the maturity of Naftogaz debt, so its obligation to purchase the tendered notes will be subject to the placement of new $bonds with five to seven years maturity. Currently, Naftogaz has three Eurobonds outstanding, including the two tendered issues and the $500mn bond maturing in November 2026.
Metinvest​ B.V. (the Netherlands), the parent company of the Metinvest mining and metallurgical group, has extended the maturity of its eurobonds, taking advantage of favorable market conditions. ​"Metinvest, the vertically integrated steel and mining group of companies, has successfully extended the maturity of its outstanding eurobonds, taking advantage of favorable market conditions. While being effectively a debt-neutral liability management exercise, all bonds due in 2021 and 38% of those due in 2023 have been extended to 2027," the company said in a press release. "The group conducted two simultaneous transactions: capped tender offers to purchase for cash the $118.020mn Senior Notes due 2021 at 7.50%, of, which $115.309mn were then outstanding, and the $944.515mn Senior Notes due 2023 at 7.75%, of, which $504.515mn were then outstanding, with a concurrent consent solicitation in respect of the 2021 bonds to include an issuer call option; a new eurobond offering of $333mn seven-year maturity bearing a fixed-rate coupon of 7.65% per annum, due on October 1, 2027," the report says.
Ukreximbank has bought $485mn in hryvnia bonds from Ukravtodor, the state highways agency​, reports Interfax-Ukraine. In three placements, the state-owned bank agreed to a 10.5% yield for one year bonds and 9.99% yields for two and three year bonds. Of the $3bn budgeted for the government’s ‘Big Construction’ roads program this year, 22% is to come from loans with state guarantees, 37% from the Road Fund, and 41% from the Covid-19 Fund.
Interpipe redeems $32.4mn of 2024 notes.​ ​Ukraine’s largest pipe and railway wheel producer Interpipe redeemed at par $32.4mn of its 2024 notes on October 5, according to the company’s release on the same date.​ ​After this early redemption, which ​Interpipe announced on September 25​, the amount outstanding of INTHOL’24 notes is $81.3mn, according to the release.​ ​Recall, Interpipe redeemed ​$97mn of its notes in August​ and ​$98.5mn in January​.
55​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com