RZD plans to place 20-yr Eurobonds in pounds sterling - source
MOSCOW. March 16 (Interfax) - Russian Railways (RZD) plans to place 20-year Eurobonds denominated in pounds sterling, a source that participated in a meeting with the company during its road show told Interfax.
The bid book for the Eurobonds might be closed on Thursday, the source said.
RZD began a road show for the Eurobonds in the UK at the beginning of the week. The bonds are being issued under Reg S. Barclays Capital, Goldman Sachs International and VTB Capital are the placement organizers.
RZD Senior Vice President Vadim Mikhailov said at the end of February that the company planned to place Eurobonds with maturities greater than seven years. RZD gave priority to pounds, as that currency would allow for the longest maturity. The issue might total 0.5 billion-1 million pounds.
RZD plans to increase its loan portfolio by a relatively small amount this year, 6 billion rubles, with a focus on the public debt market. The company might partially refinance existing ruble obligations in the second half, in order to lengthen the portfolio and reduce borrowing costs.
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