Page 58 - UKRRptSept19

rating nadir was Ca (negative) awarded in March 2015 following the Maidan events. Its zenith was B1 (positive) awarded in August 2008 at the apex of the region-wide boom.
8.5 Fixed income
Naftogaz raises $1bn from Eurobond placement. Ukraine’s natural gas holding Naftogaz (NAFTO) placed two Eurobonds for a total value equivalent of $1bn, according to its July 12 statement. It placed EUR 600mn in 5Y bonds at 7.125% and $335mn in 3Y Eurobonds at 7.375%. The company highlighted that the rates were much better than it was offered in November 2018. Recall, in November, the company decided to postpone the Eurobond issue, citing “volatile markets.” Naftogaz is now “better placed to prepare for the next winter season by accumulating gas volumes in the underground gas storages,” the company commented.
With $3.6bn of the warrants designed to pay out through 2040, observers now predict the Finance Ministry will start buying them back. Timothy Ash writes from London: “One of the issues for the new government to sort out will be GDP warrants, which represent a huge contingent liability on the state...they will eventually have to be dealt with in some liability management style exercise.”
58 UKRAINE Country Report September 2019 www.intellinews.com