Ukrzaliznytsia already received $300M from bonds’ placement

"Following meetings with investors and pricing, JSC Ukrzaliznytsia attracted financing in the amount of $300 million by issuing 5-year bonds. The funds are already on the company's accounts," reads the report.

The ministry reminded that the rate of return on Eurobonds was 7.875% per annum. Applications were received from 70 investors, mostly from the United Kingdom and Switzerland.

"This is the second time in 2021, when state players in the infrastructure sector attract international investment by issuing Eurobonds. I will remind that Ukravtodor entered this market in June, having placed USD 700 million at 6.25% for a term of 7 years, which is a record law rate for Ukraine in this currency,” said Minister of Infrastructure Oleksandr Kubrakov.

The minister added that, despite the objective difficulties, Ukrzaliznytsia’s experience is successful. "We see that the demand for the company's Eurobonds has doubled the supply. It should be taken into account that, unlike Ukravtodor, Eurobonds were attracted without guarantees from the state," Kubrakov said.

Ukrzaliznytsia will use the received funds to refinance the existing debt, which will reduce the debt in the short term and will have a positive impact on the company's credit rating, Kubrakov added.

J.P. Morgan and Dragon Capital acted as joint lead managers and joint bookrunners in Eurobond offering by Ukrzaliznytsia.

As reported, on July 9, 2021, JSC Ukrzaliznytsia attracted unsecured financing in the amount of $300 million by issuing loan participation notes in the Reg S format with a maturity in 2026.

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