Ukrzaliznytsia agrees on two-year postponement of Eurobond payments

23 December 2022, 02:49 PM
Ukrzaliznytsia has completed the voting procedure of holders for restructuring (Photo:УЗ / Facebook)

Ukrzaliznytsia has completed the voting procedure of holders for restructuring (Photo:УЗ / Facebook)

Ukrzaliznytsia, Ukraine’s national railway operator, has successfully restructured payments for two issues of Eurobonds for a total of $895 million, Ukraine’s Minister of Development of Communities, Territories, and Infrastructure, Oleksandr Kubrakov, wrote on Facebook on Dec. 22.

“Today, Ukrzaliznytsia successfully completed the voting procedure of holders for the restructuring of payments for two issues of Eurobonds for a total amount of $895 million,” he said.

“The announcement has just been placed on the Irish Stock Exchange.”

According to the minister, bondholders approved the company’s proposals – similarly to sovereign debt, interest and principal payments have been postponed for two years.

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Repayments for Eurobonds issued in 2019 have been postponed from 2024 to 2026, and those issued in 2021 have been deferred from 2026 to 2028.

Coupon payments due in 2023-2024 have been postponed until January 2025 with the possibility of their capitalization.

According to Kubrakov, the postponement of payments for Eurobonds will allow Ukrzaliznytsia to reduce the burden on the company’s liquidity in the current conditions and will contribute to maintaining stable operation and continuous transport of goods and passengers in the war and post-war periods.

The minister added that the change in the conditions for issuing Eurobonds will allow the company to free up its financial resources for the repair of damaged railway infrastructure and rolling stock, to restore communication with the liberated territories, as well as returning social standards of life in such regions.

Earlier, the S&P Global Ratings agency downgraded Ukrzaliznytsia’s credit rating due to this restructuring.

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