Yield guidance for RZD's 10-yr LPNs reduced to 5.75%, demand tops $3 bln - source
MOSCOW. March 29 (Interfax) - The yield guidance for OJSC Russian Railways' (RZD) 10-year dollar-based Eurobonds (LPNs) has been reduced to around 5.75% from an initial 5.875%, a source in financial circles told Interfax citing syndicate information.
Demand for the Eurobonds comes to over $3 billion. The bid book for investors closes at 2:00 pm London time (5:00 pm Moscow time).
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.