Ukrenergo

The EBRD has sent letters to the Ukrainian ministries of energy and finance, expressing concern about recent amendments to Ukrenergo’s charter. The changes raised the quorum required to appoint or dismiss executive board members, including the CEO, to five from four. The amendment came amid the ongoing CEO selection process, with three candidates reportedly shortlisted.

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.