Ukraine's Naftogaz raises $1 bilion to pay for gas imports

Kiev, July 15 - Neftegaz.RU. Ukraine's Naftogaz Ukrayiny has raised about $1 billion from 2 Eurobond issues with proceeds to be used to secure gas imports over the rest of the summer, Platts reported.

Naftogaz will now be able to speed up imports of gas from Europe as the company seeks to accumulate 20 Bcm of gas in underground storage facilities by October 15.

"We placed the issue for the maximum amount agreed with the Cabinet of Ministers," said Naftogaz CEO Andriy Kobolev. "The money raised from international capital markets on beneficial terms will allow us to better prepare for the upcoming winter and accumulate the required volume of gas in underground storage facilities."

Naftogaz expects the proceeds to reach its account on July 19 and plans to use the money immediately to speed up gas imports, a source at the company said.

Kobolev earlier this month estimated that Naftogaz needed to raise at least $600 million to be able to import enough gas to be stored for the winter.

In the event, it surpassed that level, raising Eur600 million ($676 million) from selling 5-year euro-denominated Eurobonds and $335 million from selling 3-year US dollar-denominated bonds.

The Cabinet on Friday issued its final approval for Naftogaz to go ahead and sell the Eurobonds, Kobolev said.