Ukrainian Railways to pay coupons on Eurobonds despite worsening liquidity

MOSCOW. July 9 (Interfax) - Ukrainian Railways intends to pay coupons due on July 9 and 15 on 2026 and 2028 Eurobonds, respectively, Ukrainian media reported, quoting the national railway operator's press office.

The company had negative EBITDA in Q1 2025 as cargo haulage fell 17% year-on-year and operating expenses soared.

"Available funds have decreased significantly since the beginning of the year, increasing the need for funding by international financial institutions to cover critical capital investments and liquidity needs during the ongoing crisis," the press service said.

"Without such support from strategic partners, the company would probably not be able to honor its financial obligations to Eurobond holders," the press release says.

Ukrainian Railways has also hired a financial consultant and is seeking a solution for its loan participation notes by talking to holders of the notes in a bid to secure appropriate debt relief and mitigate liquidity challenges for the years to come.

As reported, Ukrainian Railways is analyzing potential comprehensive solutions for Eurobonds and improving liquidity.

The company in January 2025 capitalized coupon payments deferred as a result of a restructuring in 2022 on $108.28 million of 8.25% Eurobonds maturing in 2026 and on $51.9 million of 7.875% bonds maturing in 2028. This increased these issues to $703.18 million and $351.9 million, respectively.