DTEK Energy's debt is now a public financial instrument. DTEK Energy has completed restructuring its debt portfolio, including converting the current issue of Eurobonds and the principal amount of bank debt into new Eurobonds.
DTEK Energy and its creditors have reached a mutually beneficial solution resulting in approval of debt restructuring terms after concluding meetings with committees of Eurobond holders, creditor banks, and the courts.
On May 17, 2021, the agreement with the creditors, approved by the High Court of Justice in England and Wales , entered into force.
According to the restructuring terms, part of the current debt on DTEK Energy Eurobonds will be converted into DTEK Oil&Gas in the amount of $425 million at a rate of 6.75% per annum with maturity on December 31, 2026. The remaining debt (the main part of the bank debt and the current issue of Eurobonds less the amount of the issue of Eurobonds of DTEK Oil&Gas) will be converted into new Eurobonds of DTEK Energy in the amount of $1.65 billion at a rate of 7% per annum and maturity on December 31, 2027.
"Despite the loss of assets in Donbass, the systemic crisis in the Ukrainian electricity market and the economic downturn caused by the COVID-19 pandemic, DTEK ENERGY B.V. group has successfully completed the process of restructuring its Eurobonds and its main bank debt in the amount of more than US$2 billion. Following a constructive dialogue with our creditors, we have reached an agreement on new parameters for further issuing Eurobonds," DTEK CEO Maxim Timchenko said. He added, "Our agreement exemplifies the transparent and responsible European approach to investor relations and is also proof that DTEK remains committed to fulfilling its obligations to its partners. We consider this to be fundamental to safeguarding both our commercial reputation and broader confidence in Ukrainian business. I would like to sincerely thank our creditors for their patience and understanding throughout."
In 2021, DTEK Energy will make coupon payments in monetary form at an interest rate of 1.5% per annum, the remaining part of the coupon payments at 3.5% per annum will be capitalized and added to the principal amount of the debt. The proposed payments for 2021 are in line with the crisis in the Ukrainian energy sector.