“Technical default": Ukrenergo suspends payments on green bonds
Kyiv • UNN
Starting November 9, NPC Ukrenergo will temporarily suspend payments on the 2021 Green Sustainable Development Bonds. The decision will remain in force until the debt restructuring is completed within the framework of cooperation with the IMF.
NPC Ukrenergo has announcedthat it will temporarily suspend payments on its debt obligations under green sustainability bonds starting November 9. The parliamentary financial committee explains the decision as a "technical default," UNN reports.
From November 9, 2024, NPC Ukrenergo temporarily suspends payments on debt obligations under green sustainability bonds issued in 2021 under the state guarantee
It is reported that "this technical solution will be in effect until the completion of the debt restructuring, which is planned in the coming months". NPC Ukrenergo, together with the government of Ukraine, is said to be "taking all necessary measures to reach an agreement with the bondholders in the near future".
"The grounds for the suspension of payments are the provisions of a separate law, as well as two resolutions of the Cabinet of Ministers and an order of the authorized management body of NPC Ukrenergo from the state - the Ministry of Energy. These regulations were adopted as part of Ukraine's fulfillment of the terms of cooperation with the International Monetary Fund," the statement said.
As indicated, NPC Ukrenergo informed its partners and creditors about the temporary suspension of payments on the Eurobonds and assured them of the company's operational and financial stability. "We continue to fulfill our obligations and perform the functions stipulated by Ukrainian law and the company's Charter. In particular, with regard to the current tasks of preparing for winter, restoring, arranging protection and strengthening the resilience of the Ukrainian power system under martial law," the statement said.
"Well.... "Ukrenergo has declared a technical default," Yaroslav Zheleznyak, MP from the Finance Committee, explained the decision on Telegram.
