Fixed Income

July 12, 2021

In the corporate debt universe, state-owned Ukrainian Railways placed a new USD 300mn 5-year Eurobond at 7.875%. The issue, which lacks an explicit state guarantee, has a spread of 240 bps over the sovereign yield curve. The achieved yield was a bit lower than the initially expected 8.1%, as the issue was twice oversubscribed. The proceeds will be used for refinancing the company’s existing debt, meaning Ukrainian Railways total debt remains unchanged, while the portion of the short-term liabilities will be reduced. The company’s outstanding 2024 Eurobonds (RAILUA-24s) inched down by 0.2% last week to close at 103.9 (6.8% YtM).