DTEK Renewables get paid UAH 3 bln from Ukrenergo bond

State operator Guaranteed Buyer paid on Jan. 21 to
DTEK Renewables (DTEREN) UAH 2.7 bln sourced from the November
placement of Eurobond by state Ukrenergo (NPCUKR), Interfax-Ukraine reported
citing a DTEK communications manager. A week before, DTEK Renewables got paid
UAH 0.3 bln out of total UAH 3.0 bln debt of Guaranteed Buyer under the deal,
Interfax-Ukraine stated.

Recall, Guaranteed Buyer received UAH 19.3 bln from
Ukrenergo in mid-November and had to direct all the amount to decrease its debt
to renewable energy producers. On Nov. 16, Guaranteed Buyer reported that it had failed to pay UAH 3.04 bln
from the total amount, while DTEK Renewables stated that it was the only green
energy producer that had not received any eligible payment. DTEK accused the
government of political pressure on its business. The non-payment coincided
with criticism by president Zelensky’s entourage regarding media attacks
against the president spread by media controlled by Rinat Akhmetov, DTEK’s
beneficiary owner.

Following the payment delay, S&P Global Ratings downgraded DTEK Renewables’ credit rating to CCC+,
from B- on Dec. 6

Alexander Paraschiy: This is
encouraging news for DTEK Renewables and possibly all the related companies, as
this is a sign of a calming down of the conflict between the Ukrainian
president and Rinat Akhmetov. Meanwhile, this confirms our view that S&P’s
December rating move was ill-grounded, and with the recent developments, the rating
could be upgraded. All in all, we see DTEREN bonds as the most attractive in
Ukraine’s fixed income universe.