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27.05.2021

Ukrainian Railways has successfully finalized a debt management transaction

Ukrainian Railways has successfully finalized agreement with Sberbank (Ukraine) on re-profiling the debt amortization schedule. In post-pandemic business environment, under unfavorable market conditions in the international and domestic financial markets, Ukrainian Railways took advantage of the opportunities provided by the National Bank of Ukraine by extending the validity of the resolution № 73 dated June 4, 2020  "On some issues of banks and banking groups" until December 31, 2021.

 

The revised debt repayment schedule postpones majority of the debt maturing in May-end till end of 2021 year leading to a significant balancing of cash flows and liquidity of Ukrainian Railways.

At the same time, above-mentioned agreement was concluded with the lender on approved terms with a gradual reduction of interest rate. The Company reserves its right to  refinance outstanding debt to Sberbank (Ukraine) by raising financing from one of the sources at its disposal subject to market conditions in future at any time.

Debt management agreement was enabled by well-coordinated and constructive cooperation with the lender, also helped by National Bank and the Ministry of Finance of Ukraine, and implementation of measures in order to reduce the negative impact of the pandemics on the national transport sector of the economy.

Despite still fragile post-pandemic recovery in Ukraine’s economy, Ukrainian Railways meets all its obligations to the state, society and creditors in full and timely.