Ukrainian Railways pay USD 50 mln bond amortization on schedule

Ukrainian Railways (RAILUA) reported on Mar. 18 that
the company timely repaid USD 50 mln in amortization of its Eurobond, along
with coupons. In this way, the company has demonstrated its financial stability
and responsibility before its creditors, the firm reported.

The USD 500 mln bond, issued for five years in 2013,
was restructured in early 2016 with amortization payments and ultimate maturity
in September 2021. With the latest payment, the principal of the bond decreased
to USD 150 mln, which will be repaid in three semi-annual installments.

Alexander Paraschiy: The financial stance of Ukrainian Railways is indeed solid, and the
recently introduced quarantine measures in Ukraine won’t worsen it
significantly. The company halted passenger transit this week (both intercity
and suburban), and this sector typically generates huge losses due to state
requirements on restricted ticket prices. For instance, Ukrainian Railways’
operating losses (LBITDA) from passenger transportation was UAH 10 bln in 2018 and
we estimate they increased to UAH 11 bln in 2019.