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Ukraine Railway Eurobonds



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

24 Jul 2019



PSD disclosed:

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.

Project Description

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 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

The 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 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 and 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


Company Contact Information

Mr. Andriy Fedoseev, Acting Investment Policy Director
+380 44 465 1401
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 EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social 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 additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from 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 activities of the Bank 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 Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. 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 sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. 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 (e.g. 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 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; how to submit a Request for review; or contact IPAM  via email to get guidance and more information on IPAM and how to submit a request.


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