Norton Rose Fulbright advises Naftogaz of Ukraine on €1.2 billion Eurobond restructuring

Global law firm Norton Rose Fulbright has advised Naftogaz of Ukraine on the restructuring of two series of Eurobonds totalling approximately €1.2 billion.

The restructuring relates to outstanding euro- and US dollar-denominated bonds issued by Naftogaz of Ukraine through Kondor Finance plc, and was agreed initially with an ad hoc group of international bondholders and subsequently via a consent solicitation involving all bondholders, with the maturity of the euro-denominated notes extended to 2032 and the US dollar-denominated notes to 2033.

The transaction involved complex cross-border regulatory and capital markets considerations, as well as extensive engagement with the ad hoc group to achieve a consensual and implementable restructuring outcome. Against the backdrop of a challenging operating environment, a key objective of the restructuring was to preserve liquidity and financial flexibility, enabling Naftogaz to continue funding its operations. The consent solicitation secured the approval of more than 90 per cent. of participating bondholders of each series, reflecting broad support for the restructuring.

The inter-disciplinary Norton Rose Fulbright team was led by partner Jeremy Grant (Paris), who was supported by senior associate Tommy Chew (London), associate Alexandre Paturel (Paris) and associate Elise Najjar (Paris). Partner James Stonebridge (London) provided restructuring advice, while partner Duncan Bagshaw KC (London), supported by Ellen Lennox (London), advised on litigation aspects of the restructuring. Partner Peter Young (London) provided U.S. securities law support.

Jeremy Grant commented:

"This was a highly complex restructuring carried out in challenging circumstances. Working alongside Naftogaz and its stakeholders, the focus was on delivering a pragmatic and consensual solution that supports the company's financial stability and long-term operations.

"The transaction required close coordination across multiple jurisdictions and stakeholder groups, and we are pleased to have supported Naftogaz in achieving this important milestone."