JSC Ukrzaliznytsia completes consent solicitation on amending 2021 Eurobond conditions

Public Joint Stock Company Ukrainian Railways (the "Company") is pleased to announce that on December 26, 2017, the National Bank of Ukraine registered amendments to its Loan Agreement of 19 February 2016 that was reached within the framework of its Eurobond issue. Among those involved in completing this consent solicitation was financial advisor Concorde Capital, among Ukraine’s leading investment companies that has repeatedly led international and local ratings, including the Thomson Reuters Extel survey and Cbonds Awards. White & Case LLP (London, UK) served as the external legal adviser and has been working with Ukrzaliznytsia for more than five years. It has also served as the legal adviser for the Cabinet of Ministers of Ukraine. Asters served as the local legal advisor and has been regularly recognized by the most authoritative international and domestic research and ratings firms, including The Legal 500, Chambers Global, Chambers Europe, IFLR 1000, Who's Who Legal, Best Lawyers, and Expert Guides to Ukrainian Law Firms.

Amendments to the Loan Agreement include, in particular, the exclusion from events of default on overdue domestic indebtedness, and, in general, the exclusion of references to any debts that have already been restructured, as well as a waiver from Bondholders (which means their refusal of the right to accelerate loan repayment).

Earlier, the Company's bondholders supported these Amendments by electronic voting and approved them by Extraordinary Resolution at a meeting held on Dec. 8, 2017. “Successful closure of the above-mentioned Agreement allowed the Company to avoid default and did not allow a simultaneous early repayment of $500 million. The company was able to complete the process of restructuring its domestic debt to ensure the financial stability of the railway industry and to preserve the credit history and image of the honest borrower in the international capital markets,” noted the acting head of the boardYevgen Kravtsov.

These accomplishments were achieved also owing to the Company’s highly professional advisers. "For the first time, we had a Ukrainian financial advisor, which was atypical for working in foreign capital markets. However, the conditions that we secured in the process saved a lot of costs for Ukrzaliznytsia. Therefore, Ukrainian financial players have a sufficient level of professionalism and compete equally with well-known international financial players, "said Andriy Ryazancev, the company’s director of economy and finance.