9 Jun 2023 17:10

EBRD to give Ukrzaliznytsia 200 mln euro loan

MOSCOW. June 9 (Interfax) - The European Bank for Reconstruction and Development is providing Ukrzaliznytsia, Ukraine's national railway, with a loan of 200 million euro: 100 million each for both the emergency financing of capital expenditures and for the replenishment of working capital, Ukrainian media reported, citing an EBRD report.

The loan will help "expand cross-border capacity and improve rail links with the EU." It will allow the borrower to rehabilitate key rail corridors on the border with the EU and acquire rolling stock, the EBRD said.

The loan is in addition to the 150 million euro in emergency financing provided to Ukrzaliznytsia last year, the bank said.

The bank notes that it shares the risks of its investments in Ukraine with donors and shareholders. In particular, the loan should be secured by guarantees of up to half of the total amount: 60 million euro from the United States and 40 million euro from the Netherlands.

In addition, the EBRD expects this project to be financed by an investment grant of up to EUR 10 million from bilateral or multilateral donors. The grant will invest in communications equipment, energy efficient lighting and barrier-free access to several major railway stations.

The EBRD, the largest institutional investor in Ukraine, has committed to investing 3 billion euro into the country in 2022-2023. In 2022, the bank provided 1.7 billion euro and raised another 200 million euro through partner financial institutions.