Ukrenergo

Ukrenergo, the state-owned transmission system operator, has agreed on restructuring terms for its outstanding $825m state-guaranteed Eurobond with a group of bondholders representing over 45% of the notes, including the Ad Hoc Committee. The company expects to complete the restructuring by early July 2025. The agreed terms include a cash tender offer and an exchange offer for new Ukrenergo securities without a government guarantee. The cash tender offer is conditional on Ukrenergo securing $430m in financing from an undisclosed development finance institution (DFI). Bondholders will be able to tender their notes via an unmodified reverse Dutch auction with a ceiling price of 65.125% of principal ($825m) plus past due interest (PDI), currently estimated at $215m. If oversubscribed at the cut-off price, the offer will be accepted on a pro-rata basis, with any unaccepted bonds reallocated to the exchange offer.

The former CEO of Ukrenergo, Ukraine’s state-owned transmission system operator, said the company could finalize the restructuring of its $825m Eurobond by the end of this year as it managed to preserve good corporate governance and a working supervisory board. Volodymyr Kudrytsky said the company’s default was technical, not “systemic.”