OREANDA-NEWS. November 10, 2009. Naftogas Ukrainy completed the restructuring of its foreign loans worth USD 1.1bn and its Eurobonds issues worth USD 0.5bn. Specifically, the Company issued new bonds in the amount of USD 1.6bn maturing in 2014. The bonds are guaranteed by the government and have a coupon rate of 9.5%. Additionally, the Company disclosed its financial results for 9M09. Namely, the net loss of Naftogas amounted to UAH 1.9bn (vs. UAH 2.1bn of net income in 9M08), while its net revenue grew 54%, y/y to UAH 52.6bn.

Millennium Capital considers the newly issued bonds of Naftogas to be quite risky, considering its poor financial performance results and insufficiency of government funds available for the Company support. Millennium Capital also expects the news to have no significant impact on the exchange rate. Namely, the bonds restructuring has postponed the general public’s expectations of hryvnia devaluation, decreasing the dollar demand. Meanwhile, as expected, despite the net loss in 9M09, Naftogas will use the IMF funds released in late August to pay for the natural gas imported in October (USD 0.5bn), which is to stave off the pressure on the foreign currency demand.