Naftogaz Eurobond

Location:

Ukraine

Project number:

50809

Business sector:

Natural resources

Notice type:

Private

Environmental category:

B

Target board date:

12 Jul 2019

Status:

Signed

PSD disclosed:

31 Jul 2019

Project Description

Investment of EUR 120 million in EUR 600 million 5 year senior fixed rate coupon unsecured Eurobond issued alongside USD 335 million 3 year Eurobond by Kondor Finance plc and rated by Fitch in favour of NJSC "Naftogaz of Ukraine" (the "Company", or "NAK").

Project Objectives

The Eurobond proceeds are issued for general corporate purposes including the financing of gas purchases. The Bank's financing will be used exclusively for gas purchases.

The transaction will contribute to Ukraine's energy security, ensuring procurement of natural gas for the upcoming 2019/2020 winter heating season in the country.

Transition Impact

The transition impact of the project will stem from the following two transition impact qualities:

Resilient: The investment in the Eurobond will contribute to the development of the corporate bond market in a challenging environment.

Competitive: The project will include policy dialogue aimed to support the establishment of a gas exchange in Ukraine.

Client Information

KONDOR FINANCE PLC

Kondor Finance PLC is a public liability company incorporated in the UK specifically for the purpose of NAK's Eurobond issuance.

Naftogaz is a 100% state-owned company with the cabinet of ministers of Ukraine acting as nominated shareholders on behalf of the state. Naftogaz is the holding company of a vertically integrated group of entities with activities including oil and natural gas production, transportation and storage, refining and supply.

EBRD Finance Summary

EUR 120,000,000.00

Total Project Cost

EUR 600,000,000 + U.S.$335,000,000

Environmental and Social Summary

Categorised B (2014). Use of the Bond proceeds will fund the gas purchase; therefore the Project definition is limited to the trading activity only. The EBRD PRs shall apply to this activity and to the corporate environmental, social, labour and health and safety policies and management systems of NAK.

Technical Cooperation

None

Company Contact

Volodymyr Bariyatskyy
Bariyatskyy@naftogaz.com
+380 (44) 5863509
www.naftogaz.com
Bohdana Khmelnitskogo Str. 6, Kyiv, Ukraine, 01601,

Business opportunities

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