Ukraine’s national energy company has reached an agreement to restructure its $825M green bond debt.

NEC Ukrenergo has finalized an agreement to restructure the terms of its debt stemming from state-backed green sustainability-linked development bonds with a rate of 6.875% per annum, maturing in 2028. The company has collaborated with investors who control around 45% of the debt to create a debt management plan, which is expected to be implemented by early July 2025.

Bondholders were given the option to either redeem their bonds or exchange them for new debt securities issued by the company. The redemption offer entails raising $430M in international capital markets, which the company will use to redeem the bonds. With the exchange option, bondholders will be invited to swap their bonds for new unsecured Ukrenergo bonds maturing in 2031, yielding 8.5% per annum.

The green sustainability-linked development bonds represent a state-guaranteed $825M loan that Ukrenergo obtained in 2021. Last November, payments on the bonds were temporarily halted, leading Ukrenergo to declare a technical default. Since then, discussions have been ongoing regarding debt restructuring terms.