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.