EBRD ready to issue EUR 200 million loan to Ukrzaliznytsia as “emergency support”

8 March, 04:15 PM
Ukrzaliznytsia (Photo:УЗ / Facebook)

Ukrzaliznytsia (Photo:УЗ / Facebook)

The European Bank for Reconstruction and Development (EBRD) will provide national railroad operator Ukrzaliznytsia with an emergency support loan of EUR 200 million ($211 million) under sovereign guarantees, Interfax-Ukraine reported on March 7.

The bank’s board of directors plans to consider the loan project at a meeting on May 10, 2023.

The loan consists of EUR 100 million ($105 million) for emergency financing of Ukrzaliznytsia capital investments, and another EUR 100 million for capital structure support.

It is expected that half the loan will be secured by G7/EU donor guarantees in case local commercial structures cannot guarantee risk coverage mechanisms.

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The loan is designed to assist Ukrzaliznytsia increase cross-border capacity with the EU to help eliminate border crossing jams, as well as to repair sections of track damaged due to Russia’s full-scale invasion.

The funding will allow Ukrzaliznytsia to not only restore key railway corridors with EU borders, but also to purchase rolling stock to help expand the capacity of those corridors.

As reported, Ukrzaliznytsia made a UAH 10.8 billion net loss in 2022.

At the end of January, Ukrzaliznytsia signed an agreement with the owners of two issues of Eurobonds worth $895 million to postpone repayment for 24 months.

It was also reported that Ukrzaliznytsia will receive a $25 million grant from the World Bank.

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