Ukrzaliznytsia pays coupon on its Eurobond

Ukraine’s state railway monopoly Ukrzaliznytsia (UZ, RAILUA) paid the coupon on its USD 500 mln Eurobond in full on May 18-19, the entity reported on its website. The USD 23.8 mln coupon was due on May 21. The monopoly also reported that it’s continuing to pay interest on all its debt, but it has stopped making principal repayments on the debt that is not state-guaranteed or not provided by IFIs.

Recall, UZ announced on May 12 it had defaulted on some debt due to several Ukrainian lenders and had initiated a debt restructuring process with them. UZ is going to restructure UAH 32.0 bln out of its UAH 37.5 bln total debt. RAILUA Eurobonds, maturing in 2018, have been included in the perimeter of the Ukrainian government’s debt operation.