Ukrzaliznytsya Receives USD 550 mln Syndicated Loan

Ukrzaliznytsya, Ukraine’s monopoly railwayoperater, announced yesterday that it had received a USD 550 mln syndicated loan at LIBOR+2.5%. Barclays acted as lead manager for the deal. Inna Perepelytsya: This funding will be used to rejuvenize Ukriane’s railway system and rolling stock in the run up to Euro-2012. Ukrainian wagon makers Kryukiv Wagon (KVBZ: N/R), Stakhaniv Wagon (SVGZ: BUY), Mariupol Heavy Machinery (MZVM: BUY), and Azovzahalmash (AZGM: HOLD) stand to benefit. New orders from the state monopoly would increase domestic sales; wagon producers are currently oriented toward the Russian-market. Kryukiv Wagon could gain the most from this news as it is produces freight cars and is the only producer of passenger cars in Ukraine.