Oleksandr Kamyshyn, CEO of Ukraine’s state-run railway operator JSC Ukrainian Railways, announced via Telegram that the company had paid coupons on its Eurobonds due in 2024 and 2026 on July 11.
“The second and last coupon payment for Eurobonds this year, $36mn, was paid today,” Kamyshyn wrote.
The payment is somewhat of a surprise after many expected the company to default due to Ukraine running into financial difficulty. There was speculation last week that Naftogaz, Ukraine’s state-owned oil and gas company, might default on a $335mn Eurobond coupon payment on July 19 after the company released a statement saying it is “currently evaluating its liquidity and operating requirements”, placing the blame on Russia’s invasion of Ukraine.
This led to fears that Ukraine would then default on a $2.2bn sovereign bond in November. However, with Ukrainian Railways paying its Eurobond coupons, there is now much less certainty that Naftogaz will default, according to Timothy Ash of Bluebay Asset Management.
Related Articles
Nova Group targets 300% growth and global top-20 ranking in five years
Ukraine’s Nova Group, which includes logistics operator Nova Poshta and financial services firm NovaPay, plans to triple its size over the next five years and climb into the world’s top 20 postal ... more
EBRD aims to boost Ukraine operations to €3bn annually over five years
The European Bank for Reconstruction and Development (EBRD) plans to increase its annual investment in Ukraine to €2.5–3bn as part of a five-year strategy to support the country’s economy ... more
Piraeus Bank and Activitis launch Ukraine’s first digital bank for farmers
Greece’s Piraeus Bank and Ukrainian fintech firm Activitis have launched WEAGROBANK, a fully digital banking platform aimed at providing farmers and agricultural businesses with easier access to ... more