Debt policy

The Company’s key borrowing principles are described in the Regulations on FPC’s Debt Policy approved by the Board of Directors on 15 May 2015.

The Debt Policy of 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 the order of RZD.

In 2015, FPC borrowed RUB 13.1 billion, of which RUB 10.0 billion were allocated for financing cash gaps due to high seasonality of passenger traffic, and RUB 3.1 billion — for financing long-term projects included in the investment programme.

As at 31 December 2015, the Company’s loan portfolio was RUB 16.2 billion.

FPC’s Debt Policy sets the following covenant figures

Highlights Limit 2015
Debt structure (short term loans to total borrowings ratio) max 0.4 0.29
Debt coverage (net debt to EBITDA ratio) max 2.5 0.29
Interest coverage (EBITDA to net interest expenses ratio) min 4.0 21.90
Equity structure (total borrowings to equity ratio) max 1.5 0.09

Repayment of borrowings, RUB million