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DTEK Renewables to redeem eurobonds for EUR 15.83 mln

KYIV. Feb 20 (Interfax-Ukraine) – Ornex Limited (Cyprus), a 100% subsidiary of DTEK Renewables, according to the results of the tender, will buy back eurobonds of the parent company with maturity in 2024 with a total par value of EUR 35.471 million for up to EUR 15.833 million.

According to the company’s report on the stock exchange, EUR 0.584 million of the redemption amount is accrued interest, so the buyback price was about 42.2% of the face value.

As reported, Ornex Limited made the previous similar announcement on November 22 last year and, following the results of the tender, bought back bonds for only EUR 2.583 million at 30% of the face value, or a total nominal value of EUR 8.6 million, with a total issue volume of EUR 325 million.

At that time, the buyout price corresponded to the highest, which was specified in the tender conditions, while this time Ornex Limited was ready to accept buyout applications for consideration at a price up to nominal.

“The purpose of the proposal is to provide the group (DTEK Renewables) with the opportunity to optimize its capital structure by reducing the share of borrowed funds and reducing the debt burden,” the company said earlier.

According to the Frankfurt Stock Exchange, the quotes of DTEK Renewables eurobonds rose to 39.726% of the face value at the end of the day on Friday, which is almost 5.5 percentage points higher than on the day the buyback was announced on January 27.

The Bank of New York Mellon acts as an agent in the transaction.