Ukrzaliznytsia closed an agreement on deferred payments on Eurobonds for $895 million
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Ukrzaliznytsia executed an agreement with the owners of two issues of Eurobonds for $895 million on deferred coupon payments and their repayment for 24 months, closed an agreement on their restructuring. This is stated in the company’s announcements on the Irish Stock Exchange, Interfax-Ukraine reports.
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New dates of repaid bonds
- the date of repayment of bonds for $594.9 million with a rate of 8.25% is July 9, 2026,
- the maturity date of bonds for $300 million with a rate of 7.87% is July 15, 2028.
Payment of coupons for each of the issues is made once every six months. Deferred coupon payments also accrue interest at current rates, which the issuer can either pay in full or partially in the specified two years, or capitalize.
Read also: Ukrzaliznytsia expects a loss of more than 20 billion in 2023
“The postponement of payments on Eurobonds will reduce the burden on the company’s liquidity, which, in turn, will provide more opportunities to restore the infrastructure and increase the export potential of railway transport. The implementation of the transaction will also ensure the preservation of the reputation of Ukrzaliznytsa as a reliable borrower on the financial markets and will contribute to future transactions on the capital market,” commented the agreement of the Deputy Prime Minister – Head of the Ministry of Reconstruction Alexander Kubrakov.
He also emphasized that this is the first successful operation with the external debt of corporate borrowers that was not backed by state guarantees after the beginning of the full-scale invasion of the Russian Federation.
Let’s remind
Earlier, the Ministry of Finance wrote that in December 2022, Ukrzaliznytsia agreed to postpone for two years payments on Eurobonds due in July 2024 and July 2026 for $594.9 million and $300 million, respectively.
Dragon Capital and JP Morgan acted as advisers and agents in the transaction. The reward for agreeing to postpone payments amounted to 0.5% of the face value.
According to the resolution of the board, the company paid remuneration to owners of Eurobonds and agents in the amount of up to $5 million 738.48 thousand.
Author: 
Roman Myronchuk
Source: Ministry of Finance
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