The Company’s key borrowing principles are described in the Regulations on JSC FPC’s Debt Policy approved by the Board of Directors on 15 May 2015. The Debt Policy of JSC FPC is fully compliant with the Russian Railways’ Unified Corporate Standard for debt transactions to provide sufficient funding for investing and operating activities, approved by Order of JSC RZD No. 847r dated 1 April 2015.
JSC FPC’s Debt Policy sets out covenants as follows.
|Debt structure (short-term loans to total borrowings ratio)||max 0.4||0.18|
|Debt coverage (net debt to EBITDA ratio)||max 2.5||0.18|
|Interest coverage (EBITDA to net interest expenses ratio)||min 4.0||22.62|
|Equity structure (total borrowings to equity ratio)||max 1.5||0.11|
In 2016, FPC borrowed RUB 18.9 billion, of which RUB 7.2 billion were allocated to cover cash gaps due to high seasonality of passenger traffic, and RUB 11.7 billion to fund long-term projects included in the Investment Programme and refinance the current loan portfolio. In June 2016, JSC FPC successfully completed its RUB 5.0 billion 3-year debut bond issue on the Moscow Exchange.
As at 31 December 2016, the Company’s loan portfolio was RUB 19.7 billion.