BDO in Ukraine substantially contributes to successful issuance of green Eurobonds by NPC “Ukrenergo” worth $825 mln

23 November 2021

The auditing firm BDO in Ukraine reports that NPC “Ukrenergo (the client of BDO LLC for many years) successfully performed the first issue of five-year Green and Sustainability-linked bonds in November this year. The total amount of Eurobonds is 825 million US dollars, and the yield on them is 6.875%. 

As the company stated itself — as part of the issuance, the order book was oversubscribed almost three times, indicating strong interest from international investors in Ukrenergo’s inaugural Eurobond. 

Ukrenergo’s Eurobond is the largest debut international bond offering ever done by a Ukrainian non-sovereign issuer as well as the largest green Eurobond so far out of Ukraine and the CIS region. In addition, the Eurobond represents the first Green and Sustainability-linked instrument from a Ukrainian issuer and is one of only a few instruments combining green and sustainability-linked elements issued in international capital markets globally. 

During the project, the team of BDO in Ukraine, considering reference terms and requirements of investors and regulators, provided assurances as for the financial information that became the basis for describing the financial position of NPC “Ukrenergo” and was one of the sources of the Company's analysis by investors. As part of the project, BDO team provided services on: 

  • Review of the latest interim financial statements NPC “Ukrenergo”; 
  • Implementation of procedures on financial information included in offering memorandum, on the interim financial statements of NPC “Ukrenergo” and the latest annual financial statements of NPC “Ukrenergo” for 2020, audited by BDO; 
  • Performance of review procedures of other information submitted in the memorandum;  
  • Other necessary procedures for bonds offering have been completed.  

Performance of the above procedures and effective interaction with other parties involved in the offering of Green and Sustainability-linked bonds allowed BDO team to provide timely assurances to participants regarding the financial information, included in the memorandum and the Company's financial position as of the bond offering date.  

The project was performed by BDO Kyiv office, which was responsible for its implementation and directly carried out the necessary procedures under the support of BDO London office, which provided information support for the successful launch of green Eurobonds. The combination of experience of different offices of the network allowed to perform the necessary procedures efficiently and in a timely manner under the contract requirements, the London Stock Exchange and auditing standards.  

"We welcome the international capital raising to finance projects in Ukraine. This means that the Ukrainian market is open and interesting for foreign investors. Increasing attention to Ukraine by world-class players increases the importance of providing accurate and timely financial information, and hence the role of audit and related services in the market,” — commented Oleksandr Nikolayenko, Key Audit Partner of BDO in Ukraine. 

The BDO network and BDO in Ukraine once again confirmed that they have the resources and experience to carry out capital raising and auditing projects of any scale and complexity.