By KYIV. Sept 13 (Interfax-Ukraine) – DTEK Holdings Limited is ready to buy up to $50 million of DTEK Energy eurobonds due in 2027 following a Dutch auction, and also asks their holders to revise covenants to provide more opportunities for investment and a repair campaign.
“In the current wartime and unstable, inflationary macroeconomic environment, it would be economically beneficial for both bondholders and the overall financial performance of the group to make additional payments through the mechanism of an unmodified Dutch auction,” the company said.
According to it, the redemption fee will be 0.75% of the bond’s face value. Applications will be accepted until the evening of September 26. The announcement is scheduled for September 27, and settlement is scheduled for October 17. DTEK clarified that it reserves the right to change the maximum repurchase amount.
Regarding the change in covenants, the importance of developing energy storage systems for the Ukrainian energy market and the desire to invest in this sector, limited by current bond conditions, are noted.
“The group is well positioned to leverage its existing capacity and resources to offer battery storage system development and maintenance services to affiliates and third parties on commercially reasonable terms,” the document states.
In addition, there is a need for a repair campaign and replacement of damaged or outdated equipment, which requires significant capital investments.
Another factor in the change of covenants DTEK named the replacement of the original issuer of bonds DTEK Finance plc with the parent DTEK Energy B.V. at the end of November last year, as existing limits may restrict its ability to carry out its normal activities.
