Ukrainian railway company places USD95m of 5Y Eurobonds

Ukrzaliznytsia, the state-owned railway company, has placed USD95m of 7.292% Eurobonds to mature in 2024. The bond issue was oversubscribed. In early July, Ukrzaliznytsia placed USD500m of 8.25% bonds to mature in 2024, so it has managed to cut the coupon rate. Ukrzaliznytsia repaid USD175m Eurobond last March.

Following the placement, Ukrzaliznytsia yesterday signed an agreement with the EBRD, according to which 70% of the sum raised from the new issue is to be spent on upgrading TEN-T international transport corridors. This modernization project should help Ukraine attract more transit, infrastructure minister Vladyslav Krykly said.

We recall that the new government is going to sell Ukrzaliznytsia, and it is apparently yet to be decided whether it will be privatized in whole or in parts.

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