Naftogaz' offer: new notes maturing in 2014, 9.5% coupon

Naftogaz of Ukraine, in a statement published on its website yesterday, said it was offering holders of its USD 500 mln Eurobond due to mature later this month an exchange for new US dollar-denominated bonds backed by a sovereign guarantee that mature in September 2014 and carry a coupon of 9.5%. Also yesterday, the Luxembourg Stock Exchange said that trading in Naftogaz Eurobonds resumed yesterday, after a half-day disruption. The exchange reported that it had suspended trading because of the “non-respect for stock exchange regulations”, and did not specify the reason for the resumption in trading.  The Cabinet of Ministers, in a July 22 order, requested Naftogaz of Ukraine and the Finance Ministry restructure the debts of Naftogaz and lower its costs for servicing loans via refinancing. Naftogaz is seeking to restructure USD 1.1 bln in foreign debt in addition to its USD 500 mln Eurobonds. Andriy Gerus: The parameters offered by Naftogaz are in line with our expectations. We predict difficult talks with bondholders before agreement is reached on the final terms of restructuring.