Ukrainian Railway grants USD 150 mln EBRD loan for railcar purchase
6 July 2018
The EBRD board of directors approved on July 4 a USD 150
mln loan tranche for Ukrainian Railway (RAILUA), the bank’s official Artem
Shevalev wrote on Facebook the same day. The loan will allow the company to
purchase about 6,500 gondola cars at a total value of USD 260 mln, he
clarified. Among the preconditions of the loan, Shevalev listed the start of
work of the company’s new supervisory board, approval of
an action plan on corporate governance and deregulation of railcar rent component.
The loan will be provided on market conditions, without state guarantees,
Shevalev highlighted.
Alexander Paraschiy: The EBRD is
among the biggest partners of Ukrainian Railway participating in the financing
of the company’s various projects, including construction of tunnels, electrification of routes and railcar
purchases. The provision of an EBRD loan for railcar purchases is of little
surprise, given that it was planned by the company.
In the company’s plan, there is also an issue of
about USD 500 mln Eurobonds this year. We expect corporate governance
improvements in the company and the rate liberalization that happened in early
2018 will make such a placement smooth, if the company adheres to its plan.
Meanwhile, we confirm our neutral view on RAILUA bonds.
