Despite deteriorating market conditions and liquidity problems, the Ukrainian Railways joint-stock company (Ukrzaliznytsia) intends to make the coupon payments due on 9 and 15 July on its Eurobonds maturing in 2026 and 2028, respectively, as announced during an investor call on 19 June.
Ukrzaliznytsia announced this in a statement, the CFTS portal reports.
"In the first quarter of 2025, EBITDA reached a negative value due to a drop in freight volumes (-17% year-on-year compared to the first quarter of 2024) and a rapid increase in operating expenditures," the company said in a statement.
According to the company, available cash has decreased significantly since the beginning of the year, increasing the need for financial support from international financial institutions to cover critical capital investments and liquidity needs during the ongoing war.
"Without such support from strategic partners, the company would likely be unable to fulfill its financial obligations to Eurobond holders," Ukrzaliznytsia said.
In this context, Ukrzaliznytsia has retained a financial advisor and is seeking solutions regarding its Loan Participation Notes (LPNs) through negotiations with Eurobond holders to secure appropriate debt relief and mitigate liquidity challenges in the coming years.
To facilitate these negotiations, Ukrzaliznytsia plans to provide Eurobond holders with additional information on its debt management objectives and financial position. In the meantime, Eurobond holders may contact the company or its financial advisor, Rothschild & Co.
