Ukrainian PM Denys Shmyhal has directed the finance, energy and economy ministries to raise funds for the repayment of green energy suppliers through the issue of state bonds, which to be called "green bonds", the epravda.com.ua news site reported on January 20.
Last year, the government-mandated industry operator, Guaranteed Buyer, bought inefficient clean electricity, resulting in the misallocation of the market. The Guaranteed Buyer bought only UAH2.8bn ($99.4mn) worth of renewable energy for UAH24.6bn in total during March-July of 2020.
“Ukraine’s 2021 state budget does not explicitly foresee an issue of any state debt to repay the accumulated green energy arrears, so it is not clear on what basis the government is going to issue its “green bonds”. Nevertheless, such an issue is possible, and in case it’s done, it will significantly improve the liquidity of green energy producers, including DTEK Renewables (DTEREN). This supports our view that DTEREN bonds, yielding currently 10.4% to their maturity in 2024, are the most attractive instrument in Ukraine’s fixed income universe,” an analyst at the Kyiv-based Concorde Capital brokerage said in a research note.
Related Articles
Saudi private sector secures 82% of development fund contracts worth $3bn
Saudi private companies have captured 82% of contracts signed by the Saudi Development Fund over the past three years, with a total value exceeding $3bn, according to Abdulmohsen Al-Khayyal, ... more
Construction work on $4.6bn Trans-Afghan Railway could reportedly be under way within six months
Construction work on the proposed Trans-Afghan Railway could be under way within six months, while the project could cost around $4.6bn to deliver and cut shipping transit times from Uzbekistan to ... more
Uzbekistan’s banking sector becoming more resilient, says Fitch
Uzbekistan’s banking industry is becoming more resilient, with the sector underpinned by ongoing structural reforms, stronger regulation and improving governance, ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
19 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago