“JSC “Ukrzaliznytsia” decided to capitalize about $160 million of accumulated interest on Eurobonds. Their owners were asked to postpone payment for another year. Interfax-Ukraine writes about this. The company has begun soliciting consent to restructure interest payments on both bonds, due in January and July next year. In particular, we are talking about Eurobonds for $594.9 million with repayment on July 9, 2026”, — write on: ua.news
JSC “Ukrzaliznytsia” decided to capitalize about $160 million of accumulated interest on Eurobonds. Their owners were asked to postpone payment for another year.
Interfax-Ukraine writes about this.
The company has begun soliciting consent to restructure interest payments on both bonds, due in January and July next year.
In particular, we are talking about Eurobonds for $594.9 million with repayment on July 9, 2026 and interest capitalized at a rate of 8.25% in the amount of $108.28 million, which increases the volume of this issue to $703.18 million. The company also needs approvals for $300 million of Eurobonds maturing on July 15, 2028 at a rate of 7.875% for $51.9 million, which increases the issue to $351.9 million.
Inflation and rising prices for electricity and diesel fuel are increasing pressure on liquidity, the company explained. That is why they are going to increase cargo tariffs by 37%, which have not been increased for two and a half years.
In justifying the proposal, the UZ emphasized that Ukraine continues to repel the armed aggression of the Russian Federation, which is targeting vital civilian and industrial infrastructure, in particular, intensifying attacks on the energy system.
This is what leads to further deterioration of the company’s business, results of operations, financial condition and prospects, including projections of expected performance in 2025 and beyond.
After the request to postpone payments, the dollar bonds issued by UZ fell, writes Bloombreg.
Yes, 2026 notes fell nearly 6 cents to 82 cents on the dollar, the biggest one-day drop since June 2023, while the company’s 2028 notes fell 0.87 cents to 77 cents.
Already on December 18, the company will hold a meeting with investors, and the vote on the transfer of payments is scheduled for December 27.
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