By Resolution No. 1049 dated October 11, 2021, the Cabinet of Ministers of Ukraine has approved the issuance of a state guarantee to cover UAH 22.8 billion debut Eurobond issue by NEC “Ukrenergo”.
The bond proceeds will be applied to refinance 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 25,1 billion for electricity produced in 2021 and 2020.
The contemplated bond issue is long awaited great news for renewables sector. It is expected that the placement of bonds and repayment of outstanding debts towards the renewables producers would increase attractiveness of the Ukrainian renewables projects to foreign investors.