National nuclear power giant, Energoatom, has placed bonds worth UAH 1.7 billion and transferred most the raised funds to the national budget, a government source told Interfax-Ukraine.
“The company acted in keeping with a Cabinet decision: late in 2012 it issued bonds and sold them. Officially, the money was raised to finance Energoatom’s ongoing operation and replenish working capital. Yet, most of the funds were immediately spent on the payment of liabilities before the state,” the source said.
Energoatom did not comment the placement of the bonds.
As was reported, the cabinet issued resolution No. 1062-r of December 26, 2012 under which Energoatom was to issue ten-year registered unsecured bonds worth UAH 1.7 billion.
According to the document, the interest rate on the bonds was set at no more than 18% per annum (with the right to revise it by the company from the third year of the circulation of the bonds). Interest will be paid every quarter, starting from March 2013, and the last payment on the interest rates and the bonds is scheduled for December 2022.
The funds raised from the placement of the bonds were to be sent to finance the current operations of Energoatom and replenish its working capital.
The cabinet recommended that the National Commission for Energy Regulation (NCER) foresee funds for the servicing and payment of the bonds in Energoatom’s tariff.
Energoatom is the operator of all four Ukrainian-based operating nuclear power plants, which have 15 VVER reactors with an overall generating capacity of 13.835 gigawatts.
The company also operates the Tashlyk hydroelectric pumped storage power plant with a 302 MW capacity in turbine mode and Oleksandrivska hydropower plant with an 11.5 MW capacity, which together with Yuzhnoukrainsk nuclear power plant make up the South Ukrainian energy complex. Energoatom also operates the Donuzlav wind farm.
