bne IntelliNews – Ukrainian firm prepares bond issues to offset loan to renewable energy suppliers

Ukrainian Prime Minister Denys Shmyhal instructed the ministries of finance, energy and economy to raise funds for the reimbursement of green energy suppliers through the issuance of government bonds, known as “green bonds”. “. epravda.com.ua news site reported on January 20.

Last year, the government-mandated industrial operator, the guaranteed buyer, purchased inefficient clean electricity, resulting in a market misallocation. The guaranteed buyer only purchased 2.8 billion UAH ($ 99.4 million) of renewable energy for a total of 24.6 billion UAH in March-July 2020.

“Ukraine’s 2021 state budget does not explicitly foresee a public debt problem to repay accumulated green energy arrears, so it is unclear on what basis the government will issue its ‘green bonds’. Nonetheless, such a problem is possible, and if done, it will dramatically improve the liquidity of green energy producers, including DTEK Renewables (DTEREN). This confirms our view that DTEREN bonds, currently with a yield of 10.4% until maturity in 2024, are the most attractive instrument in the Ukrainian bond universe, ”said an analyst from the company from Kiev-based Concorde Capital brokerage in a research note.


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