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by more than 36% in 2020 (which does not look like a tough task, we estimate). Thus far, we remain optimistic about the company’s ability to smoothly service its debt obligations this year, and we are keeping our neutral view on RAILUA bonds.
The European Bank for Reconstruction and Development (EBRD) is going to provide a €150mn loan to Ukraine’s state railway monopoly Ukrzaliznytsia (Ukrainian Railway) with the aim to finance emergency liquidity support to provide UZ with working capital needed for its operations amid the coronavirus (COVID-19) crisis. The loan should be approved by the EBRD's board on June 24, according to the multinational lender's documents. "The bank's loan will be used to support the immediate working capital needs of the Company, ensuring the company's logistical operations capacity is adequately preserved throughout and beyond the COVID-19 pandemic," the documents read.
Boryspil airport has taken out a $10mn loan from Alfa Bank. In 2018 and 2019, Boryspil was among the top 10 fastest growing airports in Europe. After the government suspended scheduled air travel to Ukraine in mid-March, the airport’s revenue fell by 90%.
9.2.5 Retail corporate news
The European Bank for Reconstruction and Development (EBRD) has provided a $60mn loan to Ukraine's major retailer Fozzy Group with the aim of supporting its expansion. "The Bank’s long-term loan of up to $60mn will contribute to Fozzy Group’s investment programme and will help the Ukrainian food retailer to open or renovate 41 Silpo supermarkets and stores as well as 29 Fora convenience stores. The funds can be disbursed in US dollars, but also in either euros or Ukrainian hryvnias, with the latter option designed to limit currency exchange-related risks,” the EBRD said in a statement emailed tobne InetlliNews on May 21. Domestic food producers, including small and medium-sized enterprises (SMEs), which supply Fozzy Group with groceries, will also benefit from new business opportunities generated by the new stores under the popular Silpo and Fora brands that the group operates, the statement reads. Fozzy Group is one of the largest trade industrial groups in Ukraine and a leading multi-format retailer (brands such as Silpo, Fora, Fozzy C&C and Thrash), with over 560 outlets around the country.
9.2.6 Agriculture corporate news
Net revenue at dairy firm M ilkiland fell 5% y/y to €125.8mn, while EBITDA plunged 72% y/y to €0.59mn in 2019, according to its annual report published on April 30. The company’s net loss plummeted 42% y/y to €11.6mn. Its net debt decreased 10% y/y to €76.7mn as of end-2019, while its net debt-to-EBITDA ratio widened to 131x from 41x a year before. The company is still in negotiations to restructure its key credit facility, a syndicate loan for $58.6mn, after its owner changed in late 2019. Milkiland also reported that its 2019 financials were not audited as the company did not manage to find an auditor in the Netherlands. The management initiated a change in its country of domicile from the Netherlands to Cyprus by August 2020, promising that no other significant corporate changes will occur due to this (including its share listing in Warsaw).
66 UKRAINE Country Report June 2020 www.intellinews.com
