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27 Jul 2022, 13:43

Naftogaz plans to offer Eurobond holders new agreement to defer payments

On Tuesday, Naftogaz announced a technical default due to the expiration of payments to holders of Eurobonds

KIEV, July 27. /TASS/. Ukraine's Naftogaz, which has announced a technical default, plans to offer Eurobond holders a new agreement to defer payments.

"Naftogaz will immediately propose a new agreement to obtain the consent of Eurobond holders to defer payments," the company wrote on its Facebook page (banned in Russia, owned by Meta Corporation, which is recognized as extremist in the Russian Federation) on Wednesday.

On Tuesday, Naftogaz announced a technical default due to the expiration of payments to holders of Eurobonds. The company said that the Cabinet of Ministers of Ukraine did not give the company permission to fulfill obligations to Eurobond holders to make the necessary payments to pay principal and interest (for the 2022 issue) and interest (for the 2024 issue).

On July 12, Naftogaz applied to creditors to defer payments on Eurobond issues for $335 mln, $600 mln and $500 mln, with maturity in 2022, 2024, and 2026, respectively. On July 15, international rating agency Fitch downgraded the long-term issuer default rating of Naftogaz to pre-default "C".