RZD places 350 mln pounds in 20-yr Eurobonds
MOSCOW. March 18 (Interfax) - OJSC Russian Railways (RZD) is placing 350 million pounds sterling in 20-year Eurobonds, a source in banking circles told Interfax.
Spread against British government bonds will come to 325 basis points. During pricing the yield on the twenty-year issue came to 4.25%.
A source close to one of the bank organizers told Interfax that the total placement could reach 500 million pounds or less.
RZD held a roadshow for its Eurobond issue earlier this week in Britain. The issue will be placed in accordance with Reg S. Barclays Capital, Goldman Sachs International and VTB Capital are the placement organizers.
RZD's senior vice president Vadim Mikhailov, said at the end of February that the company plans to place Eurobonds for a period of over seven years. RZD wants to issue in British pounds since borrowing in this currency can be done over extremely long periods. The issue could come to 500 million -1 billion pounds.