Aequo advises Naftogaz on USD 500 mln Eurobonds issuance

Aequo acted as Ukrainian legal counsel to NJSC Naftogaz of Ukraine (Naftogaz) on Ukrainian law matters in connection with its second capital market transaction in 2019. Freshfields Bruckhaus Deringer LLP acted as a counsel to Naftogaz on English law matters. Naftogaz returned to the market in November with USD 500 million 7-year Eurobonds at 7.625% p.a., after placement of EUR 600 million at 7.125% and USD 335 million at 7.375% bonds in July 2019.

According to the company’s Press Service, the book peaked at almost 2.9 times oversubscription. Investors from around the world included from the US, UK, Switzerland, Germany and other EU Member States; Asia or the Middle East also participated in the offering. The re-offer yield reflects a 127 bp premium to Ukraine’s sovereign debt due in 2026, the lowest spread to sovereign achieved by Ukrainian stated-owned companies 2019.

Notably, the successful placement of Eurobonds has been made by the company in the course of ongoing unbundling and gas transit negotiations with the Russian Federation.

Aequo’s team provided comprehensive legal support in all matters of Ukrainian law, including issue structuring, 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 issue.

“We are grateful to NJSC Naftogaz of Ukraine for the opportunity to assist with all the company's successful capital markets transactions in 2019,’’ commented Yulia Kyrpa, Aequo’s, Banking & Finance and Capital Markets Partner.

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