KYIV, Feb 10 (Reuters) - DTEK Energy, a division of Ukraine’s largest private power producer DTEK, plans to swap its $1.67 billion debt for new Eurobonds, the parent company’s chief executive Maxim Timchenko said on Wednesday.
DTEK announced earlier this week that it had struck an agreement with bondholders and bank lenders to restructure its debt.
“It will be a new issue of bonds to replace the existing one, into which both bank debts and bonds will be converted,” Maxim Timchenko said at a press conference.
“It will be a public instrument with a yield of 5% this year, and 7% starting next year until the end of 2027,” he added.
Timchenko said the company will not only repay $20 million of the new issue annually but also plans to repurchase some bonds in the market before maturity.
He believes it will reduce the debt to $800 million-850 million by 2027.
DTEK last year suspended interest payments on its Eurobonds and bank loans, and said it would ask creditors to restructure some of its debt due to the economic crisis caused by the coronavirus pandemic. (Reporting by Natalia Zinets; Editing by Jan Harvey)