The Cabinet of Ministers has suspended payments for Ukrenergo bonds: this is not a catastrophe for the company, - investment analyst
Date: 2024-11-04 Author: Кирило Загоруйко Categories: ECONOMY
In August, the Cabinet of Ministers decided to stop payments on state guarantees that secure Ukrenergo bonds. Investment analyst Denis Sakva said this in a commentary to RBC-Ukraine.
According to him, this does not lead to a complete stop in servicing the company's debts, but only suspends payments of the state guarantee. Thus, Ukrenergo retains the ability to independently fulfill its obligations to creditors.
The analyst explained that a default can only occur if Ukrenergo decides not to make coupon payments on bonds. However, even a possible technical default will not be a disaster for the company, since Ukrenergo's main sources of financing now come from international donors such as the EBRD and KfW, and the company does not need additional funds on the borrowing market.
Recall that in 2021, Ukrenergo faced a shortage of funds to cover debts under "green tariffs". To solve this problem, it was then decided to issue Eurobonds for $ 825 million at a high interest rate of 6.8% per annum, secured by a state guarantee. Already on November 9, 2024, the company must make the first payment on this debt in the amount of $ 119 million.
The then head of Ukrenergo, Vladimir Kudritsky, was present at the August meeting of the Cabinet of Ministers, where a decision was made to suspend payments under state guarantees. Already at the beginning of September, he resigned, probably trying to distance himself from the possible consequences, since his name is now associated with this high-profile financial decision.
