Ukraine's government on February 13 approved the issue by Ukrzaliznytsia of loan participation notes (LPN) for up to $500 million through Rail Capital Markets plc, to be organized by J.P. Morgan Securities plc and Dragon Capital (Cyprus) Limited.

According to documents available to Interfax-Ukraine, the notes can be issued with a yield of up to 11% per annum for up to seven years with possible early repayment, and the total amount of commission and spending is limited to $3.7 million.

As the rationale behind placing the new securities abroad, the explanatory note indicates the need to pay $300 million for existing Ukrzaliznytsia's notes ($ 150 million each in March and September), as well as limited financing opportunities for the company in the domestic market.