Commentary & Deal Flow

NPC Ukrenergo (NPCUKR), the 100% state-owned main transmission system operator (TSO) in Ukraine, expected B3/NR/B, inaugural US$825m 144A/Reg S 5y Senior Unsecured Guaranteed Sustainability-Linked Green Bond due 11/9/26. Via BNP Paribas, Deutsche Bank and Goldman Sachs International as Joint Bookrunners and Joint ESG Structuring Agents, and Ukreximbank as Co-Manager. Fully and unconditionally guaranteed by Ukraine, represented by the Minister of Finance of Ukraine acting upon instructions of the Cabinet of Ministers of Ukraine. Early redemption: change of Control Put, Make Whole Call, Clean-up Call (80%), Tax Call. Sustainability: SPT 1a: Installed capacity of wind and solar. Performance targets: power plants connected to the power systems of Ukraine to achieve 8,900MW by the end of 2024 from the 2020 baseline of 6,474MW. SPT 1b: Share of connected wind and solar energy production capacity and total connected energy production capacity to reach 16.1% by the end of 2024 from the 2020 baseline of 11.8%. Step-up margin: 35 bps step-up per annum in rate of interest from and including the interest payment date falling in May 2025, if SPT 1a and/or SPT 1b are not met. UOP: An amount equal to the net proceeds from the issuance will be used to finance or re-finance, in whole or in part, Eligible Green Projects as described in Ukrenergo's Green and Sustainability-Linked Bond Framework, including repayment of debt owed to the Guaranteed Buyer. A Second Party Opinion (SPO) on the framework has been issued by Sustainalytics. The Green and Sustainability-Linked Bond Framework and the SPO are available on the Issuer's website: https://ua.energy/about_us/reporting/green-bonds/. Pricing 11/2. Settle 11/9.

IPTs: low 7% area. 
GUIDANCE: 7% area (+/- 12.5), WPIR.
LAUNCHED: $825m 5y green at 6.875%.

PRICED: $825m 6.875% 11/9/26 100.00 6.875% T+573.1.