The Chairman of the Board of Ukrzaliznytsia, Oleksandr Pertzovsky, stated that government support for passenger transportation and the review of freight tariffs are crucial factors for the successful restructuring of the company’s eurobonds. Currently, Ukrzaliznytsia’s debt obligations account for approximately 15% of the total value of all assets, which is about 60.6 billion UAH (1.464 billion USD).
This is reported by Business • Media
Strategic Projects and Debt History
The debt arose from financing large-scale infrastructure projects, including the Beskyd Tunnel in the Carpathians and the Darnytsia Bridge in Kyiv. To implement these projects, the company took out bank loans, which were subsequently refinanced multiple times and later converted into eurobonds. The maturity of these bonds is set for 2026.
“Currently, we essentially have debt that was taken on to finance projects that existed before 2012 and unfortunately lacked economic viability. Now we are attracting capital for clear projects with a defined payback period. For example, we are investing in generation to reduce our electricity costs or in new locomotives; otherwise, freight transportation will come to a halt,” said Pertzovsky.
Eurobond Restructuring Plan
The management of Ukrzaliznytsia plans to restructure the eurobonds to spread out debt repayments over time and avoid the need for a large one-time payment in 2026. To achieve this, the company believes it is essential for investors to be convinced of the stability and prospects of Ukrzaliznytsia’s operations over the next five and ten years. An important factor in this process will be an open dialogue with the holders of the credit portfolio.