Page 60 - UKRRptNov19

Rinat Akhmetov, is engaged with its bank lenders on finalising the restructuring of its bank debt, according to the company’s October 29 statement. DTEK is completing the documentation related to the remaining un-restructured facility that envisages, among other things, conversion of part of the debt into notes issued by DTEK Finance plc. maturing on December 31, 2024, and restructuring the remaining debt. As of June 30, DTEK had $207mn of un-restructured bank debt, of which $100mn is subject to bond conversion and $107mn subject to restructuring, according to its 1H19 presentation. Its total debt as of end-June 2019 was $1,973mn. Alexander Paraschiy at Kyiv- based brokerage Concorde Capital wrote in a note on October 31 that upon completion of the remaining debt restructuring, DTEK will finalise its debt operation started in 2015.
Ukraine's natural gas monopoly Naftogaz is going to raise $500mn via new Eurobond placement with a maturity of five to seven years following a successful placement of Eurobonds totalling €600mn and $335mn earlier this year. The company will start meetings with investors on October 30 and will be held in London, New York, and Boston. The organiser of the Eurobond placement is Citi. In July, five-year euro-denominated bonds at 7.125% and three-year US dollar-denominated bonds at 7.375% were launched, the company said in a statement. Naftogaz placed Eurobonds for the maximum amount approved by its shareholder, the Ukrainian government, and at "a rate below the approved ceiling". The Eurobond issues do not carry a state guarantee, according to the statement. The issue was approximately 2.5-times oversubscribed. The company expects to see the funds on 19 July, following the completion of legal formalities. Citi and Deutsche Bank acted as lead managers on the issue. Freshfields Bruckhaus Deringer, AEQUO, White & Case, Avellum, Linklaters and Clifford Chance provided legal advice. "The level of interest generated by the issue shows investor confidence in Ukraine and is a recognition of our efforts to make Naftogaz a transparent and reliable company," Andriy Kobolyev, CEO of Naftogaz, said in the statement. "Having raised the funds on attractive terms, Naftogaz is now better placed to prepare for the next winter season by accumulating gas volumes in the underground gas storages."
Kernel prices new Eurobond. Ukrainian sunflower oil producer and grain trader Kernel (KER PW, KERPW) on October 10 priced its new five-year $300mn Eurobond at 6.625% yield to maturity, according to a Bloomberg report on the same date. The Eurobond’s re-issue price was 99.475% of par with a 6.5% coupon. The settlement for the deal is scheduled for October 17. Kernel will have options to call its new Eurobond in three years at 103.25% of par, in four years at 101.625% of par, and in 4.75 years at par.
Metinvest announces tender results for its 2023 bonds. Ukraine’s largest steelmaker, Metinvest, had tendered $639.9mn of its METINV’23 notes by the final October 15 deadline for purchase under the tender offer announced on September 17, according to the holding’s October 16 release. Metinvest’s release said that offer conditions have been satisfied, it will purchase $440mn of the METINV’23 notes, and the deal's settlement will take place on October 17. Recall, the pricing of its planned $500mn METINV’29 and €300mn METINV’25 notes, which Metinvest intends to issue to finance the purchase, was announced on October 1.
Ukraine’s leading poultry producer MHP announced the redemption price of its Eurobond maturing in April 2020 will be $81.9mn, or 103.148% of the nominal amount outstanding of $79.4mn, according to the company’s October
60 UKRAINE Country Report November 2019 www.intellinews.com