RZD to place 20-yr Eurobonds in pounds with spread of 325 bp to British govt bonds - source
MOSCOW. March 18 (Interfax) - OJSC Russian Railways (RZD) will place 20-year Eurobonds denominated in pounds sterling with spread of 325 basis points to British government bonds, a source in banking circles told Interfax.
Pricing for the issue will take place later on Friday.
British 20-year treasuries traded with a 4.22% yield on Friday Therefore, RZD's Eurobond yield could reach 7.47%.
The guidance for the spread against British government bonds came to around 325.bp.
A source close to one of the bank organizers told Interfax on Thursday that the total placement could be worth 500 million pounds or a bit 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.
