Ukrzaliznytsia
Kravtsov says Ukrzaliznytsia plans to restructure its loans next year over high interest rates.
Acting chief of Ukrainian state-run railways operator JSC Ukrzaliznytsia Yevhen Kravtsov says a total of UAH 39 billion (US$1.5 billion) in debts to the company's external creditors does not threaten Ukrzaliznytsia operations.
"This year, we have not scheduled any major payments. We will start paying off [debts] in 2019. It will be payments on eurobonds worth EUR 300 million. This year, there will be only regular payments to creditors. In general, Ukrzaliznytsia has to pay UAH 39 billion in debts. This is not such a big burden, and we have a margin for borrowing," Kravtsov told UNIAN.
In his words, the company plans to restructure loans next year due to high interest rates.
"We plan to restructure debts next year. We need to work with the internal portfolio, because we've historically had high interest rates, so we need to work with creditors to lower the rates. We also need to start preparations for the eurobonds issue. Now we have $500 million on the Irish Exchange," he said.
Moreover, the official noted that negotiations and litigation with Russian banks continue.
"There is also a political issue. We are now in litigation with a bank over several billion hryvnias, being absolutely calm about it. There is an audit report, and we are not seeing any risks," Kravtsov said.
Read alsoInfrastructure minister says Ukrzaliznytsia must focus solely on transportation services
In May 2013, Ukrzaliznytsia for the first time placed on the Irish Stock Exchange its eurobonds with a 5-year maturity period with a coupon of 9.5% per annum totaling $500 million and maturing in 2018.
The main investors that purchased the Ukrzaliznytsia bonds were investment funds (68%), banks (25%) and hedge funds (6%).
On May 12, 2015, Ukrzaliznytsia reported to creditors a technical default, noting that it planned to restructure UAH 32 billion ($1.2 billion) in debts to private creditors, while the debt totaled UAH 37.5 billion ($1.4 billion), including about UAH 22 billion ($825.5 million) in internal debts to private creditors.
In December 2015, Ukrzaliznytsia agreed with the creditors' committee on restructuring bonds worth $500 million. In particular, the coupon rate was increased from 9.5% to 9.875% (effective from November 21, 2015) and the maturity period was extended from May 21, 2018 to September 15, 2021.