The Service Support Center branch of JSC Ukrzaliznytsia will purchase audit services from Ernst & Young Audit Services LLC to support the issue of eurobonds by additional placement of loan participation bonds (LPN) worth Hr 3.7 million.
According to the documentation published in the ProZorro state electronic trading service, Ukrzaliznytsia had a need to purchase additional similar services from the same participant, which provides similar services for the previous placement of the company’s eurobonds.
“At a meeting of the board of JSC Ukrzaliznytsia on Sept. 2, it was decided to start work on attracting an external loan from the international capital market by means of an additional issue of LPNs in the amount of at least $200 million for the needs of JSC Ukrzaliznytsia to finance capital expenditures,” the report says.
In order to save money and optimize the time for the additional issue of LPNs, the management board of the company also decided to take the necessary steps to purchase similar audit services to support the issue of eurobonds by additional placement of loan participation notes.
The specificity of the procedure for the additional issue of loan participation notes provides that the issue will be carried out according to the parameters of the main issue, which took place in July.
As reported, Ukrzaliznytsia in early July placed five-year eurobonds for $300 million at 7.875% per annum. The company plans to use the raised funds to service the company’s debt obligations and to repay the loan to Sberbank. Part of the funds is also planned to be used to replenish the working capital of Ukrzaliznytsia.
