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Govt asks NBU to allow Ukrzaliznytsia to pay $5.7 mln to complete eurobond restructuring

KYIV. Jan 25 (Interfax-Ukraine) – The Cabinet of Ministers of Ukraine is asking the National Bank of Ukraine (NBU) to allow Ukrzaliznytsia to pay $5.738 million in remuneration to the company’s eurobond holders who agreed to their restructuring, as well as fees to agents and advisers.

Relevant resolution of the Cabinet of Ministers No. 54 of January 24 was published on its website.

According to it, payments must be made before the end of January.

"The restructuring announced by JSC Ukrzaliznytsia will allow in 2023 and 2024 to save funds in the amount of about $748 million ($153 million of interest and $595 million of principal amount) and send them to meet the needs of the economy of the state and the population in rail transportation, performance of JSC Ukrzaliznytsia of its functions during martial law, as well as modernization in accordance with the national economy needs of the railway capacity and restoration of damaged/destroyed infrastructure," according to the government’s justification.

As reported, Ukrzaliznytsia in December last year agreed to defer payments for two years on eurobonds maturing in July 2024 and July 2026, respectively, for $594.9 million and $300 million. Dragon Capital and JP Morgan acted as advisers and agents in the deal. The reward for agreeing to defer payments was 0.5% of the face value.