"Ukrenergo" agreed to restructure $825 million debt: settlements postponed
The National Energy Company "Ukrenergo" has agreed with Eurobond holders on the main terms of restructuring its $825 million debt. Creditors supported the proposed changes, and the company determined the mechanism for repurchasing and exchanging securities. However, the final settlements under the deal have been postponed to October 14, 2026.
This is stated in official statements by "Ukrenergo", published through the London Stock Exchange disclosure system on October 1 and 6.
The company received consent from bondholders totaling $804.26 million, or 97.49% of the outstanding securities. This allowed them to gather the necessary number of votes to change the debt terms.
The government-guaranteed "green" Eurobonds were placed by "Ukrenergo" in 2021 with a 6.875% annual coupon. After a previous revision of terms, their maturity was postponed to 2028.
What terms creditors agreed to
The restructuring involves a combination of cash repurchase of part of the bonds and exchange of the remaining obligations for new securities.
Based on the voting results and applications received:
- bondholders of $804.26 million agreed to participate in the operation;
- of this amount, $804.06 million worth of bonds were submitted for exchange;
- bonds worth $200,000 were submitted directly for cash repurchase;
- holders of $20.74 million in securities did not join the offer.
For bonds whose holders did not participate, a separate cash repurchase mechanism is provided. The company plans to allocate about $16.38 million to it.
Under the updated terms, bondholders submitting exchange offers should receive approximately $529.48 in cash and new securities with a nominal value of $495.93 for each $1,000 of old debt.
An additional payment of $10 per $1,000 of nominal bond value is also provided for participants.
For certain holders who cannot receive new bonds due to the minimum allowed denomination, cash settlements are provided.
Why the deal completion was postponed
Initially, "Ukrenergo" planned to finalize settlements by October 8. However, in a statement on October 6, the company clarified that it now expects to conduct them on October 14, 2026.
The postponement is due to the need to align the restructuring schedule with the provision of new financing used for the cash repurchase of part of the bonds.
Thus, the main terms of the deal have been agreed and the necessary creditor approval obtained, but the final completion of settlements is still pending.
The delisting of old Eurobonds from the London Stock Exchange is also scheduled for October 14. The last day of trading should be October 13.
What will "Ukrenergo" use the released funds for
The main goal of the restructuring is to reduce the debt burden on the Ukrainian power system operator and free up financial resources for infrastructure restoration.
As Forbes Ukraine previously reported, funds for the cash repurchase of part of the bonds should come from a new loan from an international development financial institution. The maximum initially announced repurchase budget was $445 million.
The company explained that savings from reducing debt obligations are planned to be directed to repairing and restoring power grids damaged by Russian attacks, as well as increasing energy system resilience.
This is especially important amid ongoing strikes on energy facilities and the need to finance restoration work before the heating season.
Negotiations on restructuring the debt lasted over a year. Initial agreements with the main group of creditors were reached back in April 2025, and in April 2026, the parties adjusted the parameters of the future operation.
Conducting final settlements will be the next stage in implementing the agreed deal.
Based on materials: "Ukrenergo" — creditor voting results from October 1, "Ukrenergo" — updated terms as of October 6, Forbes Ukraine.
