Russian Railways to borrow up to RUB 700bn by 2015.

By bne IntelliNews June 17, 2011
Russian Railways (RZD) is going to borrow up to RUB 700bn (USD 24.8bn) until 2015, head of the company Vladimir Yakunin told the press. As reported this week, RZD placed additional Eurobonds worth GBP 350mn yielding 7.317% annually. This comes as an additional issue to GBP 350mn worth of 20-year Eurobonds at 7.487% annual coupon rate placed by RZD in the end of March 2011. In April 2010 RZD placed USD 1.5bn worth of 7-year Eurobonds at a coupon rate of 5.739%. 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. Companys 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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