Ukrenergo Has Successfully Placed USD 825 mln Debut 5-year "Green" Eurobonds at 6.875%

On November 3, 2021, NEC "Ukrenergo" announced the placement of USD 825 mln debut 5-year Green and Sustainability-linked Eurobonds. EBRD supported the issuance of the green bonds by acting as an anchor investor investing with USD 75 mln. The placement is organized by BNP Paribas, Deutsche Bank, Goldman Sachs and Ukreximbank. Rothschild & Cie and FinPoint acted as financial and sustainability advisors to Ukrenergo.

This important news follows other recent events:

• On October 11, the Cabinet of Ministers of Ukraine provided a state guarantee to cover UAH 22.8 billion debut Eurobond issue by NEC "Ukrenergo"
• On October 28, the international rating agency Fitch Ratings announced that an expected rating of "B (EXP)" was assigned to the Eurobond issue by NEC "Ukrenergo"

 

According to Ukrenergo’s Green and Sustainability-Linked Bond Framework, the bond proceeds will be applied to finance or refinance new or existing eligible green projects and the outstanding debt owed by NEC "Ukrenergo" to the Guaranteed Buyer for the services relating to an increase of renewable electricity generation. At present, an aggregate debt owed to the Guaranteed Buyer amounts approximately to UAH 26,5 billion for electricity produced in 2021 and 2020.

The Framework also mentions the Company's plans to achieve 8,900 MW of installed solar and wind capacity by 2024 and a 16.1% share of wind and solar production by 2024.

The bond issue is long-awaited great news for the renewables sector. It is expected to help restore the credibility of the Ukrainian renewable energy sector and boost the confidence of private investors and financiers, paving the way for much-needed investment to support the country’s green transition.