Ukrenergo Debt Restructuring Frees $135 Million for Grid Rebuilding

Ukraine’s electricity transmission system operator NEC Ukrenergo has completed a restructuring of its 2021 sustainable development Eurobonds, redirecting approximately $135 million that would otherwise have gone to creditors toward repairing war-damaged power infrastructure.

Holders of 97.49% of the company’s securities backed the deal, according to First Deputy Prime Minister and Energy Minister Denys Shmyhal. Under the revised terms, the total claim under state-guaranteed Eurobonds was reduced to $494.75 million, carrying an annual interest rate of 8.6% and a final maturity in 2041.

Alongside the restructuring, Ukrenergo issued new unsecured bonds worth $395 million at 8.5% annually, due in 2031. The arrangement also eases pressure on electricity transmission tariffs and strengthens the company’s financial position. The operation was made possible by a government decree providing the required state guarantee.

The freed funds will be directed toward rebuilding grid sections damaged by Russian strikes and improving the resilience of Ukraine’s energy system.

The move comes as Ukraine works to restore 6.2 GW of generating capacity ahead of the upcoming heating season, with 4 GW already under active repair. Over the past two years, the banking sector has financed energy projects for businesses and households totaling 68.7 billion hryvnias under a sector memorandum, supporting the restoration of 1.9 GW of generating capacity.

Source: Цензор.НЕТ