Naftogaz appealed to the owners of Eurobonds to find a mutually acceptable solution

Naftogaz of Ukraine NJSC appealed to the owners of Eurobonds maturing in 2022 and 2026 with a proposal to intensify interaction in order to find a mutually acceptable solution.

This is stated in the notice that was placed by Naftogaz on the Irish Stock Exchange on November 18, 2022.

"One of our key priorities is to restore confidence in Naftogaz, particularly among our investors. The proposal to return to constructive dialogue is the first step towards this," said Oleksiy Chernyshov, chairman of the board of Naftogaz.

The message also states that Naftogaz has appointed Lazard Frères SAS (Lazard) as an exclusive financial advisor in accordance with the Resolution of the Cabinet of Ministers of Ukraine No. 1003 dated November 8, 2022. Lazard will coordinate the negotiation process together with AEQUO and Freshfields Bruckhaus Deringer – Naftogaz's legal advisors.

In addition, Naftogaz outlined its priorities after the appointment of a new manager. Including: ensuring energy stability and independence; increasing trust in Naftogaz on the part of the state, international partners, creditors, and investors; ensuring a stable passage of the current heating season.

As a reminder, in July 2019 Naftogaz through Kondor Finance plc issued Eurobonds in two tranches: tranche A with a nominal value of €600 million due in July 2024 and tranche B - $335 million due in July 2022.

In November 2019, Naftogaz issued Eurobonds with a face value of $500 million, maturing in November 2026 through Kondor Finance plc.

On July 26, 2022, the deadline for payments by Naftogaz to owners of Eurobonds expired, and Naftogaz could not make them.

In August 2022, Naftogaz successfully conducted negotiations with the owners of Eurobonds, which mature in July 2024. 77% of investors voted "for" and agreed to the proposal to postpone payments for two years.

However, investors who are owners of Eurobonds maturing in July 2022 and November 2026 did not agree to Naftogaz's proposal to postpone payments.