Polish Railways PKP finalized the sale of bonds for PLN 650m. However these funds will not be spent for paying back debts, but for service of previously contracted loans.
PKP has to allocate PLN 1.5 billion for purchase of bonds issued in the past and for paying back loans together with interest. The company has already gathered the necessary funds.
The consortium of banks bought the 5-year bond pack for PLN 650m. Negotiations lasted since summer 2009. Remaining PLN 850m will come from the company’s own sources.
- PKP will manage to service all obligations this year, but in the upcoming years it will have serious problems with regulating the increasing debt. Bonds sold today will have to be bought back in the future – said Tadeusz Syryjczyk, senior expert in TOR Transport Consultants.
Polish Railways has to pay back a total of PLN 4 billion obligations by 2011, Railway Market - CEE Review informs.