Russian Railways places USD 1.5bn of Eurobonds.

By bne IntelliNews March 29, 2010
State rail monopoly Russian Railways placed its debut issue of Eurobonds worth USD 1.5bn, the company announced. The issue (which exceeded the originally planned amount of USD 1bn) has maturity of 7 years, and carries a semi-annual coupon with a rate of 5.739%. Barclays Capital, JP Morgan and VTB Capital organized the deal. As reported last week, Russian companies plan to issue USD 10bn-USD 13bn worth of Eurobonds this year (USD 13.7bn last year). In the last four weeks VTB Bank, Bank of Moscow, Alfa-Bank, RosSelkhozBank and others raised about USD 4bn in the international markets, while oil major TNK-BP issues USD 1bn worth of Eurobonds. Overall, in 2010 RZD is planning to raise RUB 123.5bn (USD 4.2bn) worth of borrowings. As reported, state support for RZD is going to amount to RUB 50bn in 2010, the same as in 2009. However, as recently announced by the head of the state rail monopoly Vladimir Yakunin, RZD might need another RUB 400bn in state support for the period of 2010-2015. The funds would be necessary for realizing the investment program for the coming 6 years. Investment program of RZD for 2010 stands at RUB 270.5bn, main priorities being development and renewal of infrastructure on main transit and export-oriented directions. Russian Railways is 100% owned by the government.

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