Page 65 - UKRRptSept22

considered a state-related company, and the government's incentive and motivation to support UZ remains high. The state allocates cash subsidies of UAH 10B to support the company's core operating activities. The rating did not affect the independent creditworthiness of UZ - it remains at the CCC level. The ratings of the company's Eurobonds correspond to the issuer's long-term default rating in foreign currency. Fitch clarifies that Eurobonds accounted for 75% of EU debt at the end of 2021.
8.5 Fixed income
Ukrainians will be able to buy government bonds through the Diya app. In the coming weeks, Ukrainians will be offered a digital product that will allow them to avoid unnecessary complications in buying military bonds through the Diya mobile application. The President's Office has given assurance that it will be possible to carry out the procedure in a few clicks, and the purchase will take no more than 90 seconds. The state leadership is convinced that the availability of simplified government bond purchases will interest the public because government bonds have a higher interest rate than commercial bank deposits. In addition, the reliability of such investments is much higher because they are guaranteed by the state.
8.5.1 Fixed income - bond news
Ukraine’s $20bn of sovereign bond holders agreed to defer payment until 2024. Ukraine won approval for a debt-payment freeze from the holders of its international bonds, gaining relief for a budget devastated by Russia’s invasion. Investors representing around 75% of $19.6B worth of Ukraine’s foreign bonds agreed to defer coupon and principal payments until 2024, the Finance Ministry said on Wednesday. The restructuring process is backed by Ukraine’s key allies, including the US and the IMF, as the country needs cash for everything from paying pensions to defending against the much bigger and richer aggressor. The latest move, along with other measures put forward to creditors, could save the state $5.8B.
Naftogaz succeeds in postponing most Eurobond payments until 2026. According to the Ukrainian state energy company, 77% of investors agreed to delay €600 million of loans for two years after the original 2024 deadline, The remaining €90 million will be repaid by 2024.
Ukrenergo and Ukravtodor Eurobond holders agreed to defer payments.
Owners of Eurobond from the state highway agency of Ukraine (Ukravtodor) and Ukrenergo have decided to delay interest payments and postpone the maturity date for two years, announced the London Stock Exchange. The proposed changes to the conditions for issuing Eurobonds are expected to enter into force on August 11. Ukravtodor placed debut Eurobonds for $700M maturing in 2028 at a rate of 6.25% last June under state guarantee. In November of last year, Ukrenergo placed the debut of five-year green Eurobonds worth $825M with a yield of 6.875% and interest payments twice a year, also under state guarantee. Funds from the issuance of Eurobonds were used to pay debts owed from the green tariff.
Ukraine has the approval of warrant holders to postpone payments and change the conditions on its $2.6bn outstanding GDP warrants, Ukraine Business News reported on August 10.
65 UKRAINE Country Report September 2022 www.intellinews.com