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.