Russian Railways to start road show for GBP 1bn Eurobonds.

By bne IntelliNews February 28, 2011
Russian Railways (RZD) railroad monopoly plans to start a road show for GBP 0.5bn-GBP 1bn worth of Eurobonds in mid-March, Reuters reports citing companys CFO Vadim Michailov. RZD notes that political situation in the Middle East and Africa might influence the placement volume. To remind, RZD placed debut Eurobonds worth USD 1.5bn with coupon rate of 5.739% (oversubscribing from initially planned USD 1bn). As reported last week, 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. Last week 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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