Ukrenergo mulls on UAH 15 billion indebted by SE Guaranteed Buyer

The NEC Ukrenergo is considering an issuance of green bonds or attraction of loans from international finance institutions in order to pay off UAH 15 billion indebted by the SE Guaranteed Buyer. The NEC Ukrenergo is negotiating with the Ministry of Finance on the choice of the source of borrowing UAH 15 billion for the payment of the debt of the State Enterprise Guaranteed Buyer.

The NEC Ukrenergo, as the national transmission system operator, is considering a possibility of issuance of "green" bonds or attracting loans from multinational finance institutions, as announced by Volodymyr Kudrytskyi, Chairman of the Board of the NEC Ukrenergo, on February 15, 2021.

"We will choose the best way. Together with the Ministry of Finance, we are working out options for attracting funding," Kudrytskyi said.

According to Kudrytskyi, as of the end of 2020, the ТУС Ukrenergo owed the SE Guaranteed Buyer about UAH 25 billion. While UAH 10.25 billion had already been raised from state-owned banks, the missing amount constitutes UAH 15 billion still indebted.

"One of the options being discussed (by the way, the Ministry of Finance supports this option) is the issuance of "green" bonds. This is when Ukrenergo issues securities and declares that the money received from the sales of these securities on some liquid Western stock exchanges will be used for settlements with the Ukrainian "green" electricity generators. Those investors, including international companies, for which it is important that they retain RES electricity generation in Ukraine, can buy such securities with a lower percentage than ordinary treasury bonds," the Chairman of the system operator explained the principle of a possible issuance of such securities.

"Another option that we are also exploring is for the NEC Ukrenergo to borrow from international financial institutions the entire UAH 15 billion need or a part of it," Kudrytskyi added.

"Either the issue of green bonds, or possible loans from multinational finance institutions will be secured by state guarantees," said Kudrytsky, adding that in 2021 the budget includes UAH 24 billion in state guarantees for the NEC Ukrenergo, while the need for such is UAH 15 billion.

15:50 / 22 February 2021

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