Financial uncertainty looms as Ukrzaliznytsia seeks path to repay $700M Eurobond debt
Photo: Ukrzaliznytsia

Ukrzaliznytsia must repay Eurobonds totaling over $700 million by July 2026 but has not yet identified how it will meet these obligations, according to the company’s financial report published on the website of the Ministry of Economy.

This situation creates significant financial uncertainty, especially given the need to fund capital investments, operational expenditures for rail transport, and post-war reconstruction, the report states.

The company said it is currently working on solutions regarding its Eurobond obligations and aims to improve its liquidity position.

Ukrzaliznytsia has two outstanding Eurobond issues: approximately $595 million issued in 2019 and maturing in July 2026, and $300 million issued in 2021 and maturing in July 2028.

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

In December 2024, the company capitalized coupon payments accrued between July 2022 and June 2024, adding $108 million and $52 million, respectively, to the principal. Following this transaction, completed in January 2025, the adjusted principal amounts are $703.2 million due in 2026 and $351.9 million due in 2028.

The most recent coupon payment, totaling $38.3 million, was made in January 2025.

"As of December 31, 2024, the company remained in compliance with all financial and non-financial covenants related to its Eurobonds and other interest-bearing loans and borrowings. It also continued to meet its financial obligations on time. Going forward, the company intends to maintain timely servicing of its debt portfolio," the report states.

  • On December 20, 2024, S&P Global Ratings downgraded Ukrzaliznytsia's credit rating following the company’s proposal to postpone Eurobond payments.