National JSC Naftogaz Ukrainy on September 30 will pay a coupon to the holders of its eurobonds worth $500 million, but will not repay any of the principal sum, Fuel and Energy Minister Yuriy Prodan has said.
“Naftogaz will pay the coupon by the end of the day. But it won’t be
that $500 million [the principal sum of the debt],” he told journalists
in Kyiv on Wednesday.
Given a rate of 8.125% per annum and a half-year coupon period, $20.3 million is to be paid on Wednesday.
Naftogaz on September 24 offered to exchange $500 million in
eurobonds maturing on September 30, 2009 for new bonds guaranteed by
the state and maturing in 2014. The new bonds would have a coupon rate
of 9.5% per annum compared to 8.125% on the existing issue.
One condition Naftogaz Ukrainy plans for the exchange is that
holders who accept the exchange before October 8 would receive new
bonds equal to 100% of their holdings. In the second phase, until
October 15, holders would receive 95%.
The eurobond holders are scheduled to meet in London on October 19, 2009.
