Page 56 - UKRRptOct19

the offering price will be 101% of the nominal, plus the accrued interest for the period from October 2 to October 21," he added.
Ukraine's state-owned rail monopoly Ukrzaliznytsia has raised $94.9mn via a new Eurobond ​placement that matures in 2024, a source in banking sector told news agency Interfax on September 11. The price of the placement was 103.8% of the face value and the bond has a yield is 7.292% per annum. The move followed ​July's $500mn Eurobond issue​ of a five-year note with a yield of 8.25%. The demand was five times higher than the offer and reached $2.5bn at the time.
Ukrainian state-owned rail monopoly​ ​Ukrzaliznytsia​ (Ukrainian Railway) has paid a $150mn amortisation payment on its 2021 Eurobond on time​, along with the coupon, the company's CEO Yevhen Kravtsov wrote in his blog on September 16. In this way, the company has paid a total of $300mn in amortisation on the $500mn bond this year. The remainder of the bond will be amortized over the next two years. Alexander Paraschiy at Kyiv-based brokerage Concorde Capital believes that unlike the March amortisation payment, this time the company had enough liquidity to smoothly pay the bond after raising $500mn in July from 2024 bond placement and additionally almost $100mn from a tap placement in September. With its recent placements, the company has enough liquidity to smoothly serve the next repayment tranches in 2020, Paraschiy believes.
Ukrainian Railways and the EBRD signed on Sept. 10 a deal based on which the bank will purchase about $100mn of additional Eurobonds​ of the company maturing in 2024, Ukraine’s Infrastructure Ministry reported. The effective rate of the additional bond placement is 7.292%, the ministry said. EBRD confirmed this on Sept. 11, stating that the raised funds will be used for the rehabilitation of priority railway lines. About 70% of the funds raised will be used for modernizing the Trans-European Transport Networks, and the rest will be used for rehabilitating the company’s communication and dispatching infrastructure, the ministry said. Ukrainian Railways CEO Yevhen Kravtsov added on his Facebook blog that the company will use EBRD money for the purchase of raw materials exclusively, and the procurements would be convened “on EBRD rules.”
Metinvest​ Ukraine’s largest steelmaker, offered the holders of its METINV’23 notes to purchase them for a total cash consideration of 106% of nominal plus accrued interest, ​according to the tender offer announcement published by Metinvest on Sept. 17. The holding plans to purchase up to $440mn out of the currently outstanding $944.5mn of METINV’23 notes, with pro rata acceptance if the noteholders tender more than $440mn. In order to finance the purchase, Metinvest plans to issue new USD-denominated notes with maturity of eight to ten years, according to a Sept. 17 Interfax-Ukraine report, which cited anonymous sources adding that Metinvest will also consider issuing a EUR-denominated note with maturity of five to seven years. The new notes will be issued in the amount of all payments related to the deal. In detail, these payments will include 103% of nominal in note purchase price, 3% of nominal in early tender payment, interest accrued, as well as all transaction costs and expenses related to both the tender and the issuance of the new notes. The total consideration of 106% will be paid to those who respond to the offer by early tender deadline, which is 5pm New York City time on Sept. 30. The early tender results will be announced on Oct. 1, and pricing of the new notes is expected as early as
56​ UKRAINE Country Report​ October 2019 ​ ​www.intellinews.com