DTEK again offers partial redemption of DTEK Energy’s eurobonds

DTEK Holdings Limited again offered to buy back DTEK Energy eurobonds maturing in 2027, however, compared to the November offer, the stated maximum amount for the buyback was reduced from $50 million to $30 million, and the maximum buyback price, which in November was 27% of the face value, is absent.

"The management has concluded that under the current unforeseen circumstances, given the war and the volatile inflationary macroeconomic environment, it would be preferable and cost-effective for the bondholders and for the group's overall economic performance to conduct additional buybacks through the unmodified Dutch auction mechanism," the company said.

It is noted that DTEK at the same time carefully analyzed the current liquidity and compared the short-term operating needs of the group, its current and future receipts on accumulated receivables, further payments on outstanding bonds, multiple risks and restrictions on trading and expenses.

DTEK noted that since October 2022, the entire energy infrastructure of Ukraine has been hit by massive missile strikes, which leads to significant damage at a number of generating facilities and regional energy companies.

"Because the duration and consequences of the war in Ukraine remain unclear at this time, it remains impossible to reliably assess the full severity of the consequences or their impact on the financial position and results of the group in future periods," the document states.

DTEK adds that currently there are restrictions on exports and the NBU moratorium on the purchase of foreign currency for payments on eurobonds.

"In these circumstances, it is critical that the group continue to actively manage maturities and debt repayments to ensure a more stable capital structure that allows it to protect its assets, operations and employees," it said.

Source: www.en.interfax.com.ua