Ukrzaliznytsia has placed 5-year Eurobonds worth $300 million at 7.875% per annum,

a banking source tells Interfax-Ukraine. This would be substantially higher than the 7% range analysts had expected. J.P. Morgan and Dragon Capital were advisors on the issue. Fitch Ratings assigned the issue a “B” rating and placed it on the Rating Watch list as ‘Negative.’  The funds raised are to be used to service the state railroad’s debt and to repay a loan from Sberbank.

Yesterday Ukrzaliznytsia started investor calls for the placement of new 5-year Eurobonds to raise $300 million, Interfax-Ukraine has reported.

 Last month, S&P changed the outlook for Ukrzaliznytsia’s credit rating from negative to positive in connection with a debt rescheduling deal with Sberbank. With the economic downturn caused by the pandemic, UZ saw its 2019 UAH 2.99 billion net profit move to a UAH 11.9 net loss in 2020. J.P. Morgan and Dragon Capital are the advisors on this week’s bond issue.