Ukraine Naftogaz creditors agree debt terms –finmin

13:55, 29 October 2009
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Ukrainian state energy...

Ukrainian state energy firm Naftogaz has finished talks on restructuring its foreign debt and all creditors have agreed on the terms, Acting Finance Minister Ihor Umansky told journalists on Thursday, according to Reuters.

Naftogaz has wanted to restructure all its foreign debt including a $500 million Eurobond by swapping it with a $1.65 billion new bond, settlement for which had been due on Thursday.

The energy giant, often at the centre of rows with Russia over gas supplies and hit by higher import prices, said on Wednesday the settlement date has been moved to Nov. 5.

Asked by journalists whether the one-week delay indicated there were problems with bilateral creditors, Umansky said: "That is not true. All creditors have agreed".

"From a technical point of view, the instrument which we have proposed to investors as restructuring of Naftogaz` debts is not a simple one.

"Today in the government we will approve a resolution which will give final agreement on the restructuring conditions ... After that, we have four technical days to finish the process (of restructuring)," he said.

Naftogaz wants to issue a 5-year bond with a coupon of 9.5 percent, higher than the 8.125 percent that it had paid for the Eurobond, which matured at the end of September and was not repaid.

Eurobond holders had already agreed to the new terms and Naftogaz had been in talks with bilateral lenders for the rest of the debt worth over $1 billion. Local media said they were DeutscheBankDBKGnDE>, Credit Suisse (CSGN.VX: Quote, Profile, Research) and Depfa.

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