Ukrzaliznytisa gets EUR 150 mln from EIB for railroad upgrade

The European Investment Bank (EIB) approved on Nov. 23 a EUR 150 mln loan to Ukrzaliznytsia (RAILUA) to finance the modernization of railroads, Interfax-Ukraine reported on Nov. 28. The project – worth a total of EUR 314 mln, according to EIB – will enable the modernization of about 250 km of railway lines in southern Ukraine, the bank reported. A month ago, Ukrzaliznytsia’s CEO announced that the EIB and EBRD are considering to provide EUR 150 mln each for a railroad modernization and electrification project.

Alexander Paraschiy: Ukrzaliznytsia has been working for many years with international financial organizations, and it’s not in default to any of them. So it comes as no surprise that they’re continuing to provide financing. This is in line with our view that Ukrzaliznytsia will continue to borrow money for various projects so that its financial leverage won’t decrease with time. We remain neutral on RAILUA bonds.