AEQUO has acted as a Ukrainian law counsel to NJSC Naftogaz of Ukraine (“Naftogaz”) on Ukrainian law matters in connection with the landmark Eurobonds issue. Freshfields Bruckhaus Deringer LLP has acted as a counsel to Naftogaz on English law matters. Naftogaz has placed 5-year bonds in the amount of EUR 600 million at 7.125% and 3-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 issue of bonds by Naftogaz in Euros and US dollars.
According to the Press Service of the company, “the issue was approximately 2.5 times oversubscribed. Over 120 investors from the UK, other EU Member States, Asia, 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 issue structuring, drafting and negotiating the transaction documentation, preparing the Offering Circular, providing legal support in the course of obtaining regulatory approvals, issued legal opinion in respect of the transaction and assisted with completion of the Eurobond issue.
"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," comments 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. "
AEQUO's project team worked under the supervision of Yulia Kyrpa, partner, and included Bohdan Dmukhovskyy, Myroslava Savchuk, counsels, Oksana Krasnokutskaya, of counsel, Vasyl Mishchenko and Mykhaylo Soroka, senior associates, Glib Bukharin, Viktor Komziuk, Olesia Mashtaler, Taras Shmyh and Anna Konovalova, associates.