Holders of Ukrzaliznytsia's $500 million eurobonds due in 2021 have approved the refusal from the cross default over the restructuring of some internal debts by the state-owned enterprise.

According to a report of Ukrzaliznytsia on the website of the Irish Stock Exchange (ISE), the decision was passed at a meeting of eurobond holders on December 8.

As reported, Ukrzaliznytsia in May 2013 placed its debut $500 million eurobond issue with a maturity period of five years through the specially created company Shortline Plc.

Eurobonds of Ukrzaliznytsia, together with the securities of Oschadbank and Ukreximbank, were included in the restructuring of the external sovereign and government guaranteed debt initiated by the Ministry of Finance of Ukraine after the IMF approved a new four-year extended fund facility for Ukraine for $17.5 billion.

In March 2016, Ukrzaliznytsia restructured its eurobonds, prolonging the maturity until September 15, 2021 and raising the interest rate from 9.5% to 9.875% per annum. Also, the repayment schedule for the principal loan amount was changed: 60% should be paid in 2019, 20% in 2020 and 20% in 2021.

At the end of November 2017, Ukrzaliznytsia asked the holders of the bonds to approve the refusal from cross-default on eurobonds due to the restructuring of its internal debt.