Ukrainian Railway

State rail monopoly Ukrainian Railways (RAILUA) released a cleansing statement, noting it held restricted discussions with an ad hoc group (AHG) of bondholders on Apr. 1-8 about restructuring its $703m notes due July 2026 and $352m notes due July 2028. The company proposed converting the two issues into a single Eurobond amortizing over 2030-2033, with a 20% nominal haircut (subject to variation via a “principal adjustment mechanism”) and a reduced coupon rate. The statement said the AHG was “supportive of a consensual reprofiling” but rejected the proposal without making a counterproposal. The company intends to continue engagement with the AHG to reach agreement on restructuring terms. In supplementary disclosure, RAILUA reported its 2025 revenue declined by 16% y-o-y to $2.2bn, on an 8% drop in cargo shipments to 161 Mt, while EBITDA fell 30% y-o-y to $293m, also reflecting substantial cost inflation. As a result, Net Debt/EBITDA rose to 5.2x at end-2025, up from 2.9x at end-2024.

The Ukrainian parliament’s economic development committee recommended that the government not increase freight tariffs for Ukrainian Railways in 2026.