RZD placing 10-yr Eurobonds at 5.7% p.a.
MOSCOW. March 29 (Interfax) - OJSC Russian Railways (RZD) is placing ten-year Eurobonds yielding 5.7% per annum, a source in financial circles has told Interfax.
Placement volume will be determined in an hour's time, the source said. Demand for the RZD bonds has topped $3 billion.
The initial yield guidance announced on Thursday came to 5.875% but was reduced to 5.75%. The final yield was set at five basis points lower.
RZD plans to place the indicated amount of the Eurobond issue.
JP Morgan, RBS and VTB Capital are the organizers.
RZD placed 25 billion rubles in seven-year Eurobonds last week with yield at 8.3%. The company twice reduced the yield guidance during the roadshow. The initially company planned the second move onto this market right after Russia's Finance Ministry.
Russia placed $7 billion in Eurobonds on Wednesday in three tranches - five-year ($2 billion, at 3.325%), 10-year ($2 billion at 4.591%) and 30-year ($3 billion at 5.798%). Demand for the bonds reached $25 billion.
RZD's total borrowing through bond placements on Russia and international markets should come to 100.3 billion rubles for this year.
