Dragon Capital Acts as Joint Bookrunner and Joint Lead Manager on a $500m Ukrainian Railways Eurobond Issue

03.07.2019

NOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD BE UNLAWFUL

 

Dragon Capital and J.P. Morgan acted as Joint Bookrunners and Joint Lead Managers for the Ukrainian Railways US$ 500 million Eurobonds offering of 8.25% notes due July 2024.

Orderbook reached a peak of ca. US$ 2.5bn (5x oversubscription) and benefitted from orders from over 175 investors.

This was the first “hard currency” offering from a quasi-sovereign borrower out of Ukraine since 2013 and the lowest coupon for a quasi-sovereign borrower out of Ukraine since 2011.

Key transaction parameters:

*Issuer

Rail Capital Markets plc

*Borrower

JSC Ukrainian Railways

*Expected issue ratings

B- (Fitch)

*Type

Loan Participation Notes

*Ranking

Senior unsecured

*Format

Reg S only

*Maturity

Bullet, 5 years (9 July 2024)

*Settlement

9 July 2019

*Issue size

US$500mm

*Coupon

8.25% SA

*Use of Proceeds

(i) fully repay UZ’s bridge loans from JSC “Oschadbank” and FinInPro maturing 1 Aug 2019, (ii) address upcoming amortization payment under the 2016 Notes due Sep 2019 and (iii) use the balance for partial repayment of certain other FX indebtedness of UZ as well as for capex and working capital financing

*Law / Listing

English / Euronext Dublin (GEM)

*Joint Lead Managers

J.P. Morgan, Dragon Capital

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