Dragon Capital Acts as Joint Lead Manager and Joint Bookrunner in US$ 300m Eurobond Offering by Ukrainian Railways

Dragon Capital and J.P. Morgan acted as Joint Lead Managers and Joint Bookrunners for Ukrainian Railways’ return to international debt capital markets, pricing a US$ 300m 5-year Eurobond on July 8, 2021.

The order book reached ca. US$ 600m, resulting in more than 2x oversubscription, supplied by over 70 investors. Most of the investors represented large asset management funds (94%), reflecting a very high quality book of orders that was built during the execution; banks and private banking institutions accounted for 3%; and hedge funds for the remaining 3%. Geographically, 50% of the investors came from the UK and 41% from continental Europe.


Key transaction parameters:


Rail Capital Markets plc


JSC Ukrainian Railways

Borrower ratings

B (Fitch) / CCC (S&P)

Issue rating

B (Fitch)


Reg S


U.S. dollar-denominated fixed rate Loan Participation Notes

Issue size

US$ 300m


7.875%, payable semi-annually

Pricing date

8 July 2021

Settlement date

15 July 2021

Maturity date

5 years, 15 July 2026



Issue price

100.0 (par)

Use of Proceeds

 (i) repayment of the Sberbank Facility

 (ii) the September 2021 redemption payment under UZ’s notes due 2021

 (iii) partial repayment of outstanding amounts under UZ’s revolving credit facilities; and

 (iv) the remainder of the proceeds, if any, for financing of the Company’s working capital needs




Irish Stock Exchange (GEM)

Joint Lead Managers

J.P. Morgan, Dragon Capital