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  • Ukrenergo has successfully priced a debut 5-year Green and Sustainability-linked Eurobond

    NPC Ukrenergo has successfully priced a debut 5-year Green and Sustainability-linked Eurobond for a USD 825 million size at 6.875% yield.

    As part of the issuance, the order book was oversubscribed almost three times, indicating strong interest from international investors in Ukrenergo’s inaugural Eurobond.

    Ukrenergo’s Eurobond is the largest debut international bond offering ever done by a Ukrainian non-sovereign issuer as well as the largest green Eurobond so far out of Ukraine and the CIS region. In addition, the Eurobond represents the first Green and Sustainability-linked instrument from a Ukrainian issuer and is one of only a few instruments combining green and sustainability-linked elements issued in international capital markets globally.

    The Eurobond is irrevocably and unconditionally guaranteed by the state of Ukraine. This issuance was rated in line with Ukraine’s sovereign rating by Moody’s and Fitch.

    An amount equal to the net proceeds from the transaction will be used to finance or re-finance eligible green projects, as described in Ukrenergo’s Green and Sustainability-Linked Bond Framework. Principally, such amount will be used by Ukrenergo for the repayment of debt owed to the Guaranteed Buyer, with any remaining proceeds after repayment of the debt owed to the Guaranteed Buyer used to finance or re-finance other eligible green projects. The Green and Sustainability-Linked Bond Framework and the Second Party Opinion (issued by Sustainalytics) are available on Ukrenergo’s website.

    The Chairman of the Management Board of NPC Ukrenergo, Volodymyr Kudrytskyi, commented: “Today marks an important milestone in Ukrenergo’s history. We managed to achieve the landmark Eurobond transaction with an innovative Green and Sustainability-Linked structure in the global capital markets which also becomes an important benchmark for Ukrainian issuers. More importantly, the transaction marks a critical step towards resolution of the electricity market imbalances in Ukraine in line with Ukraine’s obligations to renewable energy producers.”

    Rothschild & Cie and FinPoint acted as financial and sustainability advisors to Ukrenergo. BNP Paribas, Deutsche Bank and Goldman Sachs International acted as joint lead managers and bookrunners as well as joint ESG structuring agents on the transaction and Ukreximbank served as co-manager.

    Settlement of the Eurobonds is expected to take place on 9 November 2021.

    The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. The Issuer does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States.

    This communication does not constitute an offer of these securities to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the securities. This communication is being distributed to and is directed only at (i) persons who are outside the United Kingdom or (ii) persons who are investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the “Order”) and (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as “Relevant Persons”). Any investment activity to which this communication relates will only be available to and will only be engaged with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this document or any of its contents.

    This announcement is not an advertisement of securities in Ukraine, and is not an offer or invitation to, or solicitation of, any such circulation, distribution, placement, sale, purchase or other transfer of the securities in the territory of Ukraine. It is not intended to be and must not be publicly distributed in or into Ukraine.


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