RZD placing 25 bln rubles in 7-yr Eurobonds at 8.3%, demand tops 40 bln rubles
MOSCOW. March 23 (Interfax) - Russian Railways (RZD) is placing 25 billion rubles in seven-year Eurobonds at 8.3% pa, a financial market source told Interfax.
"RZD has launched the placement of 25 billion rubles in bonds at 8.3% pa. They aren't saying anything specific about demand, but it looks like it's been oversubscribed, and there might be a bond tap before long," the source said.
The bonds will pay semi-annual coupons.
JP Morgan, RBS and VTB Capital are organizing the offering. The road show lasted from March 19 to 22. Yield guidance of around 8.5% was announced on Thursday, but this was later lowered twice, to 8.375% and 8.3%. Demand for the bonds tops 40 billion rubles, Andrei Solovyev, head of debt capital markets at VTB Capital, told Interfax.
The company plans to issue longer dollar-bonds after the seven-year ruble-Eurobonds have been placed, a financial market source has said. A second Eurobond tranche could be offered a few days after the ruble-bond deal. The parameters for the dollar-bonds have not yet been decided, but the bonds will be longer than seven years, the source said.