Ukrzaliznytsia pays Eurobond coupons despite losses and liquidity struggles

Ukrzaliznytsia, Ukraine’s state railway operator, has made coupon payments on its Eurobonds in July despite ongoing losses and a strained liquidity position, according to CEO Oleksandr Pertsovskyi.

"Despite a significant deterioration in our financial condition, losses, and a liquidity shortfall, Ukrzaliznytsia made coupon payments on Eurobonds maturing in 2026 and 2028 (due July 9 and 15, respectively). This was a difficult but necessary decision, as it keeps the door open for continued cooperation with our financial partners," he wrote on Facebook.

The company has two outstanding Eurobond issues:

• $595 million issued in 2019
• $300 million issued in 2021

These liabilities were restructured in December 2022, including a two-year deferral of principal repayments and a postponement of coupon payments.

In December 2024, Ukrzaliznytsia capitalized the accrued coupon payments for the period from July 2022 to June 2024, increasing the outstanding principal by $108 million and $52 million, respectively.

Following the restructuring transaction finalized in January 2025, the revised principal amounts stood at $703.2 million (due in 2026) and $351.9 million (due in 2028).

• On December 20, 2024, S&P downgraded Ukrzaliznytsia’s credit rating after the company proposed to postpone Eurobond payments.