Russian Railways issue GBP 350mn 20-year Eurobonds.

By bne IntelliNews March 22, 2011
Russian Railways (RZD) railroad monopoly successfully placed GBP 350mn worth of 20-year Eurobonds at 7.487% annual coupon rate. This makes the longest maturity of Eurobonds issued by Russian borrower in the past three years. More than 70 investors applied for the issue. In April 2010 RZD placed USD 1.5bn worth of 7-year Eurobonds at a coupon rate of 5.739%. As reported, IFRS net profit of Russian Railways more than quadrupled y/y to RUB 110.5bn in H1/10 vs. RUB 25bn seen in H1/09. Company's IFRS net profit almost doubled y/y to RUB 152.2bn in 2009. In H1/10 revenues increased by 22% y/y to RUB 651bn, while EBITDA jumped 85% y/y to RUB 205bn. Recently Fitch Ratings affirmed long-term Issuers Default Rating (IDR) of Russian Railways at BBB, outlook Stable. Agency attributed the affirmation to full state ownership of the company, its strategic and systemic economic importance, as well as expected government support for the company. Russian Railways is 100% owned by the government.

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