2 August 2018
The European Bank for Reconstruction and Development
(EBRD) is going to provide up to USD 100 mln to Ukraine’s natural gas holding
Naftogaz as a part of a USD 250 mln revolving loan facility arranged by Goldman
Sachs, the bank reported on Aug. 1. The EBRD expects the board meeting to
consider the deal will take place on Sept. 5. The loan facility, supported by
the U.S. Overseas Private Investment Corporation (OPIC), is aimed at financing
Naftogaz’s accumulation of natural gas.
Alexander Paraschiy: It has become tradition for Naftogaz to arrange large debt financing
in late summer or autumn to accumulate natural gas stockpiles ahead of the
heating season, when gas consumption surges fourfold compared to the summer
period. Naftogaz’s low leverage (net debt-to-EBITDA ratio below 0.5x as of
end-2017) allows the company to count on smooth debt financing from abroad. The
loan facility, whose approval is very likely, as well as the possible placement
of Eurobonds in autumn will enable the company to fully finance its gas
stockpiles for the nearest heating season.