DTEK Oil & Gas has completed the approval process for the restructuring of $425 million in Eurobonds issued through NGD Holdings B.V., extending the final maturity of the debt by three years to December 31, 2029. The company will also raise the coupon rate on the bonds from 6.75% to 9.875% per annum and switch to phased repayment of the principal amount.
According to the issuer’s stock exchange disclosure, NGD Holdings obtained the required approvals from bondholders to implement the proposed restructuring, after which all consents became irrevocable and the terms of the deal became binding on all investors. A consent fee of $2.75 million will be paid on May 14 to Eurobond holders who submitted the relevant instructions.
DTEK Oil & Gas announced its intention to restructure the Eurobond issue on April 9, 2026. Under the new terms, the increased 9.875% rate began accruing from April 30. Repayment of the principal will take place in installments: the first payment of $27.5 million was due on April 30, 2026, after which the company plans to pay $27.5 million every six months — on December 31 and June 30 — with the remaining balance to be repaid at the end of 2029.
During the process of approving the restructuring terms, the company extended the deadline for submitting instructions several times. As of April 23, holders of 88.66% of the bonds had supported the deal, against the required minimum of 90%. By April 30, this figure had increased to 88.87%, after which investors were given an additional week to join the agreement. The issuer warned that if the 90% threshold was not reached, it could use an alternative restructuring mechanism requiring approval either from more than 50% of bondholders or from holders of 75% of the total issue amount.
As part of the deal, creditors also agreed to temporarily release the company from the obligation to publish financial statements until the end of martial law in Ukraine. DTEK Oil & Gas said that current restrictions imposed by the National Energy and Utilities Regulatory Commission complicate the disclosure of part of its financial and operating information.
The company justified the need for the restructuring by citing the National Bank of Ukraine’s foreign exchange moratorium, which significantly limits the ability to make cross-border transfers for debt servicing. DTEK Oil & Gas said that the impact of the NBU restrictions does not allow it to guarantee repayment of the bonds by the originally scheduled maturity date of December 31, 2026.
Additional pressure on the group’s financial position came from the consequences of Russian attacks on energy infrastructure. According to the company, the group’s facilities were shelled four times, and restoration work is ongoing. Total capital expenditures for repairs are estimated at around EUR25 million.
DTEK Oil & Gas’s financial performance has also deteriorated. Consolidated revenue from gas product sales, including natural gas, gas condensate, and the resale of purchased gas, fell from UAH 27.04 billion in 2023 to UAH 19.84 billion in 2024. The company said the decline was primarily due to the natural depletion of existing wells.
At the same time, the group continues preparations for the development of new deep fields. NGD and Kosul subsidiaries hold licenses for blocks with depths exceeding 6,250 meters, the development of which requires significantly higher investment and the involvement of partners due to complex geological conditions. The company plans to transfer the development rights for these blocks to new special purpose vehicles (SPVs), which will implement the projects jointly with financial and industry partners, sharing risks and investment requirements.
To implement this model, DTEK Oil & Gas also asked bondholders for consent to create new subsidiaries and transfer subsoil use licenses to them. This concerns two fields in Poltava region — the Maiorivska and Birkivsko-Zinkivska areas — the development rights to which group entities acquired at auctions in November 2022 for UAH 1.102 billion and UAH 211 million, respectively.
Against the backdrop of the completed restructuring, quotations for DTEK Oil & Gas Eurobonds on the Frankfurt Stock Exchange remain close to par. According to the latest data, the bonds are trading at 92.68% of face value, compared with around 91% when the restructuring was announced.
