Ukraine Railway Eurobonds

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Overview

The investment of up to US$ 100 million in a tap issue of Ukrainian Railways PJSC ("UZ" or the "Company") senior unsecured Eurobonds. The Eurobonds tap is structured as an issuance of loan participation notes carried out by a Special Purpose Vehicle, Rail Capital Markets PLC (the "Issuer"), and is a follow up to the initial public issuance of US$ 500 million that took place on 1 July 2019. The proceeds from the Bank's financing will be used to finance the rehabilitation of priority railway lines.

Project ID 50833

Status Signed

Location

Ukraine

Business Sector

Transport

Notice Type

State

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Company Contact Information

Mr. Andriy Fedoseev, Acting Investment Policy Director
fedoseev@uz.gov.ua
+380 44 465 1401
www.uz.gov.ua
Tverska (Yezhy Giedroytsya) Str. 5, Kyiv, 03150, Ukraine

Project ID 50833

Status Signed

Location

Ukraine

Business Sector

Transport

Notice Type

State

Environmental Category

Approval Date

24 Jul 2019

Disclosure date

12 Sep 2019

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Ukraine Railway Eurobonds (Ukranian) (PDF, 0.68MB)

Project description

Project objectives

The proceeds will be used to finance the rehabilitation of railway tracks (predominantly on the Trans-European Transport Network corridors within Ukraine), with a focus on priority sections which are currently limiting the operational speed of trains. The rehabilitation will allow to increase the speed of trains, overal throughput capacity, and reduce CO2 emissions. Thew Project will benefit from the introduction of the EBRD's procurement rules, Environmental and Social Policy and the implementation of a Corporate Governance Action Plan for UZ's subsidiaries.

Transition impact

ETI Score:60

Project's transition impact will be derived from the Green quality, via energy efficiency improvements and emissions reduction through the rehabilitation of railway tracks on lines that are currently limiting speed and throughput capacity or will become speed-restrictive in the near future.

Client information

UKRAINIAN RAILWAYS PJSC

Ukrainian Railways PJSC is a vertically-integrated railway company fully owned by the government of Ukraine. The Company was established as a public joint stock company in October 2015, via reorganisation of the former State Administration for Railway Transport of Ukraine, as part of the ongoing railway sector reform.

Issuance of the Eurobonds is carried by Rail Capital Markets PLC, a public limited company incorporated under the laws of the United Kingdom. The Issuer will on-lend the proceeds of the issuance to UZ.

EBRD Finance Summary

USD 94,902,000.00

Total project cost

USD 500,000,000.00

In addition to the EBRD financing, the amount includes proceeds from the initial public issuance of USD 500 million that took place on 1 July 2019. The proceeds are used for UZ balance sheet optimisation, capital expenditure and working capital financing.

Environmental & Social Summary

Categorised B (2014). The Environmental and Social Due Diligence ("ESDD") has confirmed that the Project will include standard operational and construction risks related to the track rehabilitation which can be mitigated by the application of standard industry good practice. The Client is the biggest state railway company in the Eastern Europe with about 300,000 employees and has a complex internal management structure, including numerous internal contractors and suppliers and the sections to be rehabilitated are distributed among 6 regional branches.

The ESDD confirmed that the Client has a well-developed Environmental, Health, Safety and Social ("EHSS") risk management framework and the capacity and capability to operate in line with the Bank's Performance Requirements. The ESDD confirmed that every railway section is subject to the detailed project design process, including a review of the EHSS impacts and risks assessment, which will also include consideration and inclusion of appropriate mitigation measures in case of any social negative impacts and disturbances to the railway traffic. All rehabilitation works will be undertaken with the boundaries of the existing railways corridor, so no land acquisition is required for the Project. The Environmental and Social Action Plan ("ESAP") has been developed to include identified improvements which are needed to enhance the EHSS monitoring and control of the rehabilitation works, undertake regular internal and external EHSS and labour audits to verify that EHSS standards are properly applied and that all mitigation measures are implemented.

The Project will be monitored in terms of its environmental and social performance and implementation of the ESAP through annual E&S reports and site visits when deemed necessary.

Technical Cooperation and Grant Financing

None

Company Contact Information

Mr. Andriy Fedoseev, Acting Investment Policy Director
fedoseev@uz.gov.ua
+380 44 465 1401
www.uz.gov.ua
Tverska (Yezhy Giedroytsya) Str. 5, Kyiv, 03150, Ukraine

PSD last updated

27 Feb 2020

Understanding transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with the EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and its associated Environmental and Social Requirements (ESRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”. The ESP and the ESRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation, and to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about the environmental and social (E&S) performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD also requires its clients to disclose information, as appropriate, about the risks and impacts of projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all of the Bank's activities in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The EBRD believes that identifying and resolving issues in the project assessment and approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts andhelps to monitor integrity risks in projects post-investment.

OCCO is further responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, either within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. OCCO will follow-up all matters reported. It will review all matters reported. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP, which entered into force on 1 January 2025, sets out how the EBRD discloses information and consults with its stakeholders to promote better awareness and understanding of its strategies, policies and operations. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (for example, through the client’s project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or the project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate and how to submit a Request for review. Alternatively, contact IPAM by email at ipam@ebrd.com for guidance and more information on IPAM and how to submit a request.

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search

Ukraine Railway Eurobonds

Overview

Project timeline

Company Contact Information

Project description

Project objectives

Transition impact

Client information

EBRD Finance Summary

Total project cost

Environmental & Social Summary

Technical Cooperation and Grant Financing

Company Contact Information

PSD last updated

Understanding transition

Business opportunities

General enquiries

Environmental and Social Policy (ESP)

Integrity and compliance

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)