Ukrainian Railways in deal to delay payments on $895 mln Eurobonds
23/12/2022 09:03
KYIV, Dec 23 (Reuters) - State-owned Ukrainian Railways
has struck a deal to delay payments on $895 million of
Eurobonds, Deputy Prime Minister Oleksandr Kubrakov said on
Friday, part of a broader effort by the Ukrainian government
this year that has saved billions.
"Ukrzaliznytsia finalised negotiations with bond holders on
restructuring $895 million bonds. Payments will be postponed for
2 years," Kubrakov said on his Twitter account.
He added the decision, which he said was backed by the
government and finance ministry with investment banks JP Morgan
and Dragon Capital acting as advisers, "will secure stable
passenger and cargo transportation".
The company, a key player in the country's economy and
labour market, has deferred debt payments on U.S. dollar
denominated bonds worth $594.9 million maturing in July 2024 and
on $300 million notes maturing in July 2026.
The company will pay investors a fee for their consent,
Interfax-Ukraine news agency reported.
The Ukrainian government restructured all its Eurobonds
earlier this year, leading to nearly $6 billion in savings on
payments through 2024.
Battered by Russia's invasion, Ukraine expects its economy
to contract by over 30% this year.
Ukrainian Railways is a key means of transportation for both
humanitarian aid and exports as Black Sea transport routes have
not been fully unblocked.
The Fitch ratings agency downgraded Ukrainian Railways to
'C' from 'CC' earlier this month.
(Reporting by Olena Harmash
Editing by Mark Potter)
((Olena.Harmash@thomsonreuters.com;))