Ukrenergo and Ukravtodor join the Consent Solicitation transaction launched by Ukraine

Following the liability management operation announced by Ukraine on July 20, today, on July 28th, Ukrenergo and Ukravtodor have invited investors of their respective Sovereign guaranteed Eurobonds to approve certain amendments to the conditions of these securities on terms substantially similar to those proposed by Ukraine in relation to its Eurobonds. If approved, these liability management operations will contribute further to the preservation of FX liquidity for the country, enabling the two entities to focus their available financial resources on necessary and important efforts to rebuild and maintain the power network and road networks in Ukraine. Each of these Eurobonds is guaranteed by Ukraine. For the purposes of determining if the requisite consents for each of the Ukrenergo and Ukravtodor written resolutions have been received in accordance with the requirements of their respective Collective Action Clauses, the consents of investors in the respective Eurobonds of Ukrenergo and Ukravtodor will be aggregated with the consents delivered in relation to the Ukraine Eurobond consent solicitation.

In addition, Ukrenergo is requesting its investors to approve deferral of testing of its sustainability-linked targets and to add a possibility to adjust such targets in the future to reflect the consequences of the war.

One of the objectives of these liability management exercises is to ensure comparable treatment of Ukraine’s external direct and guaranteed private creditors. After the envisaged modifications to the terms and conditions of the issuance, Ukrenergo’s and Ukravtodor’s obligations under the bonds will remain fully guaranteed by the state.

“As it was pre-announced in our Consent Solicitation Memorandum, Ukrenergo and Ukravtodor are joining solicitations on substantially similar terms to the Eurobond Consent Solicitation transaction launched by us last week. With these transactions, we intend to proactively find a consensual solution with the bondholders to address the FX liquidity challenges we are facing due to the Russian war of aggression. We are grateful to investors who have expressed their solidarity with Ukraine and keep supporting us during the most challenging times of our history”, - said Yuriy Butsa, Government Commissioner for Public debt management.

The specific terms of the requested amendments by Ukrenergo and Ukravtodor and the timeline for completion of the liability management transactions are described in the announcements of these transactions published today, the full details of which are available for review by eligible investors in the related consent solicitation memoranda for the respective operations.