DTEK extends period for partial redemption of DTEK Energy eurobonds

DTEK Holdings Limited has extended the term for the redemption of DTEK Energy eurobonds maturing in 2027, announced on March 6, to March 23.

According to the company's report on the stock exchange, the maximum amount has been increased to $80 million, however, compared to the offer in November, there is no maximum buyback price, which was then 27% of the face value.

The decision to change the terms of the buyback was made due to the interest of investors, according to a report on the exchange.

As the company previously noted, the redemption of eurobonds will reduce the debt burden and allow to allocate more funds saved on servicing international debt to current activities, namely additional resources for restoring equipment damaged by shelling, repairing thermal power plants, investing in domestic coal mining and preparing for the upcoming heating season.

The announcement of the results of the tender is scheduled for March 24, and settlements – April 14. The direct buyer is DTEK Holdings Limited.

In a commentary to the Interfax-Ukraine agency, DTEK Energy emphasized that, first of all, it is doing everything possible to provide services for the provision of electricity and heat in the country, especially in the conditions of the most severe heating season in history, to preserve enterprises and make timely payments of employees' wages. However, the company noted, it is also important to fulfill obligations to investors. According to the terms of the debt documentation, it is necessary to allocate funds annually to service eurobonds.

"The accumulated funds were reserved before the war, they are of a limited nature for servicing international obligations," DTEK Energy said.

Source: www.en.interfax.com.ua