JSC Naftogaz of Ukraine has announced it has decided to postpone a eurobond issue worth up to US$1 billion because of volatile market conditions and elevated funding levels.
"We do not believe it is reasonable for Naftogaz to borrow at the current pricing levels. We are grateful for the high investor interest and look forward to returning to the market in future," CEO of Naftogaz Andriy Kobolyev said in a statement on the company's website.
Naftogaz will continue to monitor the markets and will consider re-engaging with investors as conditions improve.
The Cabinet of Ministers of Ukraine approved the issue of five-year eurobonds by Naftogaz on October 24. Citi and Deutsche Bank are appointed joint lead managers on the deal.
UNIAN memo. Naftogaz is the national oil and gas company of Ukraine. It is 100% state-owned and subordinated to the Cabinet of Ministers of Ukraine. The group is a major player in extraction, transportation, storage and refinement of natural gas and crude oil. In 2017, Naftogaz group supplied 17.4 billion of cubic meters (bcm), produced 16.4 bcm, imported 8.7 bcm, transmitted 93.5 bcm of gas and extracted 1.9 mt of crude oil.