Russian gov't believes improvements needed in RZD's 2015 financial plan for infrastructure bonds
MOSCOW. Nov 28 (Interfax) - The Russian government "largely approved" drafts of Russian Railways' (RZD) investment program and financial plan for 2015, but the government believes some improvements are needed, according to a statement on the government's website.
In particular, it is necessary to determine how the company will find a source of financing for 100 billion rubles in RZD infrastructure bonds.
These decisions were made at a Cabinet of Ministers meeting on Thursday, the statement says.
RZD uses infrastructure bonds to finance projects with breakeven periods of 15-20 years. The capital market currently offers no instruments with those maturities (ruble liquidity in Russia is available for terms up to 10 years, while the obligations in heaviest demand have terms of three-five years), RZD has said. It uses the proceeds to develop rail transport infrastructure and to buy locomotives.
