Ukrainian Railways: Ukrainian Railways successfully finalized its Sberbank (Ukraine) debt restructuring
"Ukrainian Railways has successfully finalized restructuring transaction worth about $200 million on debt that was due by the end of July this year. Debt exchange is fully consensual and was implemented by mutual agreement of the parties. Relevant agreements were signed last week and become effective upon National Bank of Ukraine’s approval of a relevant resolution.
Ukrainian Railways, similarly to the majority of the global businesses, has significantly suffered from a negative impact of the pandemic caused by the spread of the SARS-CoV-2AT coronavirus. The anti-crisis measures, currently being implemented within Ukrainian Railways’ authority, allowed to balance the cash flow and to optimize the company’s activity. However, to maintain the proper level of liquidity and social function of Ukrainian Railways, company has restructured its liabilities to Sberbank (Ukraine) worth about $200 million due on July 31, 2020.
Given the negative impact of the pandemic on financial markets, Ukrainian Railways has restructured the debt with extension of amortization schedule for the next 3 years with a possibility of early repayment. The company plans to further refinance the debt in the international capital markets or with one of the domestic Ukrainian banks.
The realized deal will have a positive effect on the company's liquidity and will allow to sustain required level of current financing of opetational and capital investments.
The restructuring resulted from well coordinated and constructive positions of the lendor and Ukrainian Railways, National Bank and Ministry of Finance of Ukraine. State authorities supported implementation of the steps to reduce the negative impact of the pandemic on the national economy’s transport sector, in particular above mentioned debt restructuring" - press release of Ukrainian Railways.