The State Railway Administration of Ukraine (Ukrzaliznytsia) plans in the first half of 2014 to issue eurobonds again, Infrastructure Minister of Ukraine Volodymyr Kozak has said.

"We're the only state-run enterprise in Ukraine that has floated eurobonds worth $500 million without state support, and in 2-3 days Standard & Poor's assigned a sovereign rating to the company. Next year we'll again issue [eurobonds]," he said at the first international annual business conference, ABC: Ukraine & Partners in Kyiv on June 14, 2013.

He said that the issue of eurobonds next year would be easier, as now Ukrzaliznytsia has experience, and the trust of international companies and partners.

As reported, on May 15 this year, Ukrzaliznytsia placed a debut issue of five-year eurobonds worth $500 million at 9.5% per annum. The lead managers were Barclays, Morgan Stanley and Sberbank CIB.

Standard & Poor's Ratings Services (S&P) on May 21, 2013, raised its long-term corporate credit rating on Ukrainian railway operator – the State Administration of Railways Transport of Ukraine (Ukrainian Railways, or Ukrzaliznytsia) to 'B' from 'B-' and removed it from CreditWatch where it was placed with positive implications on May 2, 2013.

"The upgrade primarily reflects the agency's view of the improvement in Ukrainian Railways' liquidity position, following its issue of $500 million loan-participation (LPN) notes, due in 2018," read the report of the agency.

The outlook is negative.

Despite the issue amount being lower than S&P anticipated when the rating agency placed the rating on CreditWatch positive on May 2, 2013, S&P considers that the proceeds from the notes will enable the company to address the mismatch between its cash flow generation and debt amortization.