Concorde Capital Research: Ukrzaliznytsia may issue of up to USD 1.5 bln in Eurobonds in two years

September 13, 2017 - Cbonds

 

Yevhen Kravtsov, the acting head of Ukraine railway monopoly Ukrzaliznytsia (RAILUA), said he believes that tapping international debt market is one of the ways of improving the company’s economic efficiency, according to Interfax-Ukraine report of Sept. 12. Over the next 1.5-2 years, the company is planning to issue new Eurobonds for USD 1.0-1.5 bln, Kravtsov said. Such an issue will enable the company to refinance some of the company's expensive loans, he said.

Alexander Paraschiy: Out of the company’s total debt of USD 1.4 bln as of end-1Q17, USD 0.5 bln were dollar-denominated loans from local banks with a weighted average interest rate of 11.6%, and UAH 0.5 bln were Eurobonds with a coupon rate of 9.88%. That indeed looks too expensive, given that the company’s Eurobond trades at a YTM of about 8% these days. Therefore, we see it possible for the company to tap the Eurobond market to lower its average cost of debt, especially if Ukraine’s sovereign Eurobond will be successfully placed this month. We maintain our neutral view on RAILUA bond.
Share:
minimizeexpand
150 000
issues: local and international bonds
170
countries
+7 812 336 97 21
pro@cbonds.info
150 000
issues: local and international bonds
170
countries
Сbonds is a global Fixed income data platform
+7 812 336 97 21
pro@cbonds.info
Data
  • Descriptive data on bonds
  • Bond Quotes from trading systems and market participants
  • Prospectuses and other issue documents
  • Credit ratings
  • Indices and indicators
  • Market news and analytical research
Analytical instruments
  • Multi-parameter bond database search
  • Bond Maps
  • Market calendar
  • Bond calculator
  • Watchlist and Portfolio management
  • Chart analysis
  • Mobile App and Excel Add-in Tool
Enter or RegisterSubscription/Trial access