The Ukrainian state railway operator "Ukrzaliznytsia" (UZ) plans to pay the January coupons on its Eurobonds amounting to $594.9 million maturing on July 9, 2026, and $300 million maturing on July 15, 2028, as stated in the company's announcement on its website on Thursday.
"The company now has improved expectations regarding the implementation of tariff increases, although an agreement on this matter has not yet been reached. Therefore, the company has decided to make coupon payments on its Eurobonds … to maintain constructive relationships with Eurobond holders," noted UZ.
"This decision will also provide the company with additional time to prepare a more comprehensive solution regarding the Eurobonds," added "Ukrzaliznytsia."
Previously, the company reported that it had decided to capitalize interest on the 2026 Eurobonds with an 8.25% rate amounting to $108.28 million, increasing the total of this issue to $703.18 million, while for the 2028 Eurobonds with a 7.875% rate, it capitalized $51.9 million, raising the total to $351.9 million.