RZD directors okay 40.5 bln ruble add'l share issue
MOSCOW. Feb 21 (Interfax) - The board of directors at OJSC Russian Railways (RZD) has decided in favor of an additional issue of 40,461,952 ordinary shares, company materials say.
The securities, with par value of 1,000 rubles, are to be issued to the Russian government in closed subscription, and RZD will by doing so see 40.461 billion rubles in proceeds. The government approved an additional share issue amounting to that figure at end-January.
Source at RZD told Interfax that this represents a subsidy for 2012.
Of that, 14.497 billion rubles of the proceeds will be put into creating transport infrastructure in preparations for the 2014 Olympics in Sochi, 7.5 billion rubles into the comprehensive reconstruction and construction of second rail lines and electrifying the Vyborg-Primorsk-Yermilovo line in Leningrad Region (with approaches to ports in Primorsk), 17.638 billion into the development of Moscow Region's transportation complex, and 825.4 million rubles for improving infrastructure at the Gremyachaya station.
Share placement will begin the following day after notification is provided on the state registration of the issue and should wrap up no later than one year after registration.
It was reported that the Russian government approved the 6% indexation of RZD's freight-forwarding tariffs in 2012 effective January 1 with the allocation of around 40 billion rubles in compensation from the federal budget.
