Concorde Capital’s Alexander Paraschiy writes:

Concorde Capital’s Alexander Paraschiy writes: “Naftogaz is the third Ukrainian bond issuer who initiated a debt extension this fall, after Metinvest (who tendered its 2021 and 2023 notes) and Kernel (who is tendering its Jan. ’22 notes). The timing of Naftogaz’s debt operation does not look optimal, in our view…Namely, there is uncertainty about the Ukraine-IMF deal, meaning Ukraine’s sovereign risk is high, while the recent interim report of Naftogaz (with losses at the EBITDA level) does not add optimism about the company’s prospects…All this means Naftogaz is likely to see a higher rate on its new bonds as compared to any of the existing notes.”