Aequo advises NJSC Naftogaz of Ukraine on EUR 600 million and USD 335 million Eurobonds issue

Aequo has acted as a Ukrainian legal counsel to NJSC Naftogaz of Ukraine (Naftogaz) on Ukrainian law matters in connection with a landmark Eurobonds issuance. Freshfields Bruckhaus Deringer LLP has acted as a counsel to Naftogaz on English law matters. Naftogaz has placed five-year bonds in the amount of EUR 600 million at 7.125% and three-year bonds in the amount of USD 335 million at 7.375%. The deal has become the first placement of Eurobonds by Naftogaz since 2009, as well as the first dual-tranche bond issuance by Naftogaz in Euros and US dollars.

According to the company’s Press Service: “the issue was approximately 2.5 times oversubscribed. Over 120 investors from the UK, other EU Member States, Asia, and South America have purchased the bonds.”

“The level of interest generated by the issue shows investor confidence in Ukraine and is a recognition of our efforts to make Naftogaz a transparent and reliable company. Having raised the funds on attractive terms, Naftogaz is now better placed to prepare for the next winter season by accumulating gas volumes in the underground gas storages,’’ said Andriy Kobolyev, CEO of Naftogaz.

Aequo’s team provided comprehensive legal support in all matters of Ukrainian law, including the structuring of the issue, drafting and negotiating the transaction documentation, preparing the Offering Circular, providing legal support in the course of obtaining regulatory approvals, issuing a legal opinion in respect of the transaction, and assisting with completion of the Eurobond issuance.

“We are grateful to NJSC Naftogaz of Ukraine for the opportunity to be a part of this transaction, which is significant not only for the company but also for Ukraine as a whole,’’ commented Yulia Kyrpa, Aequo’s Banking & Finance and Capital Markets Partner, “Our team is pleased to have been able to contribute to the success of this challenging and complex transaction.’’

Клієнт: «NAFTOGAZ»
Індустрія: Energy and Natural Resources
Практика: Capital Markets