: :inin Kyiv (EET)

Naftogaz gets $500 mln loan secured with World Bank guarantee


On 30 December 2016, Naftogaz signed with Citi and Deutsche Bank a euro-denominated revolving credit facility for gas purchase in the equivalent of $500 million, according to the state holding`s press service.

”The facility is secured by the World Bank`s guarantee, which, in turn, is secured by the sovereign guarantee issued within the formation of the energy fund according to Resolution No.876 of the Cabinet of Ministers of Ukraine dated 30 November 2016 ”On the provision of the International Bank for Reconstruction and Development with the sovereign guarantee under obligations of NJSC Naftogaz of Ukraine,” the press service reports.

The guarantee is valid for a term of four years, with two years available for gas purchase and two years for repayment.

”The guarantee of the World Bank and the credit facility are highly cost-effective compared to other loan agreements of Naftogaz,” the press service says, adding that, according to the funding conditions, the company will continue buying gas under eligible existing contracts, switching from pre-payment to post-payment terms.

The World Bank guarantees the repayment of the loans to the international commercial banks.

Under this credit facility, Naftogaz will be able to purchase gas from both western and eastern directions. Decisions to do so will depend on the competitiveness of gas supply proposals.

The facility will also allow Naftogaz to extend its track record and longer-term relationships with the international banking community.

”The program is a result of twelve months of meticulous work. These funds will enable Naftogaz to ensure a stable gas supply to Ukrainian consumers during this winter,” commented Andriy Kobolev, Naftogaz CEO.

In 2015, Naftogaz received a $300 million revolving loan from the European Bank for Reconstruction and Development to purchase gas from European suppliers.

UaPositon

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