Naftogaz to issue UAH 4.2 bln in bonds to refinance other debt

Обзоры по компаниям и отраслям 24.09.2013 Ukraine’s Cabinet of Ministers allowed leading gas production and distribution company Naftogaz of Ukraine (NAFTO) to issue local bonds at a total value of UAH 4.2 bln to enable it to repay bank loans, the UNIAN news agency reported on September 23, citing a resolution issued on August 21. The bond will be issued for up to three years at coupon rate of 10%. Alexander Paraschiy: The biggest loan Naftogaz needs to repay is a USD 400 mln (UAH 3.2 bln) credit from VTB Capital (due October 11). We believe the gas monopoly is collecting funds to repay this loan first. Most likely, Naftogaz will enter the ForEx market to accumulate needed foreign cash, which will be yet another factor pressuring NBU international currency reserves in the next month.