Moody's rates Mavka Finance bonds 'Aa3' in Ukrenergo debt restructuring
On October 16, Moody's Ratings assigned an "Aa3" rating with a stable outlook to $494.75 million in Reconstruction Notes bearing an interest rate of 7.297% and maturing in 2041, issued by Mavka Finance DAC and protected by political risk insurance provided by the U.S.
On October 16, Moody's assigned an Aa3 rating with a stable outlook to $494.75 million in Reconstruction Notes issued by Mavka Finance, protected by political risk insurance from the U.S. International Development Finance Corporation. The notes, backed by Ukrenergo's green bonds, mature in 2041 and carry a 7.297% interest rate. Ukrenergo used the proceeds to buy back and exchange its existing bonds, while also establishing reserves and paying transaction expenses.
The DFC's political risk insurance provides protection against non-enforcement of arbitration awards and denial of recourse for the transferred bonds. Despite the two-notch difference between the ratings, Moody's noted that the PRI policy increases the expected recovery but does not guarantee payments. The restructuring saved Ukrenergo approximately $135 million, which will be used to repair power grids damaged by Russian attacks and improve the resilience of Ukraine's power system.
Written by urgent.news from Interfax-Ukraine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
