Following meetings with investors and pricing, Ukrainian Railways is the first post-pandemic quasi-sovereign company to raise USD 300 million funding by issuing Reg S senior unsecured loan participation notes with a maturity of 5 years. This was announced by Ivan Yuryk, Acting Chairman of the Management Board of Ukrainian Railways.

Based on the results of pricing the YTM was fixed at 7.875% p.a., lower than the coupon of the 2019 Eurobond issue. Investors showed strong interest to provide financing to the Company – demand was twice as much as the Company's supply, tickets for financing were received from over 70 investors, predominantly from the UK and Switzerland.

“On the back of the challenging previous fiscal year, it is worth noting the confidence of investors in Ukrainian Railways as a responsible borrower that duly meets all its financial obligations. Given regulatory restrictions and, accordingly, limited resources in the local market, the international capital market is a reliable alternative and a transparent source of financing at a market rate for Ukrainian Railways”, Mr. Yuryk noted.

The proceeds from the issue will be used for refinancing of the existing debt facilities of the Company and aimed at lowering average cost of financing as well as freeing up the liquidity for operating purposes. Hence, the bond issue will not increase the total quantum of Ukrainian Railways’ debt portfolio but will only reduce its short-term liabilities with further positive effect on the Company's credit rating.

Funding was arranged by Joint Lead Managers and Bookrunners of the issue - the leading international investment banks J.P. Morgan and Dragon Capital with the support of the Minister of Infrastructure of Ukraine.