Page 50 - UKRRptApr20

8.5.1​ Fixed income - bond news
Ukraine’s leading coal and power holding ​DTEK​ is "in the process of developing a standstill and debt restructuring proposal" on its Eurobond and certain bank debt, the company said in a statement on March 27. The yield on DTEK’s Eurobonds went up by almost 30% to 50% of their face value, which reduced their yield by 9 p.p., to 31.3% per annum after the company said it may restructure them. Because of the restructuring, the company will not pay its quarterly coupon due on April 1 and interest on banking debt due on March 31, it reported. The payments will instead be made "in accordance with the terms of the proposal". Due to the state of emergency declared in Ukraine on March 25, DTEK "must take all required steps to maximise the concentration of resources in order to provide maximum support to the state and secure the energy supply in Ukraine", the company said, citing its CEO, Dmytro Sakharuk. The state of emergency has been officially recognised as a force majeure event, the company stated. At the same time, it is not a default, Sakharuk said on March 28. DTEK completed the restructuring of most of its banking debt and Eurobonds in 2017, based on which it agreed to repay most of its existing debt in 2023-2024. Based on the company’s 2019 presentation, it is scheduled to repay about $20mn per year in 2020-2022.
“DTEK Energy's Eurobonds fell from 104% of the nominal to 60%, ​and their yield rose from less than 10% per annum to more than 25% per annum.” Interfax-Ukraine reports. IMF Managing Director Kristalina Georgieva said last week: “Investors have already removed US$83bn from emerging markets since the beginning of the crisis, the largest capital outflow ever recorded.”
Determined to go ahead with this year’s massive road building and repair program, the Cabinet of Ministers authorized Ukravtodor, the state
50​ UKRAINE Country Report​ April 2018 ​ ​www.intellinews.com