14 Jan 2011 12:34

RZD to place 40 bln rubles in additional share issue for financing Olympic projects

MOSCOW. Jan 14 (Interfax) - OJSC Russian Railways' (RZD) board of directors has approved an increase in its charter capital worth 40 billion rubles, the company said in a report on a board meeting held on December 18, 2010.

The company is readying an additional issue comprised of 40,000 common shares at a face value of 1,000 rubles each. The placement will be held by closed subscription.

Funds from the additional share issue will be earmarked for financing the construction of transportation facilities for the 2014 Olympics in Sochi, the report said.

RZD's president, Vladimir Yakunin, said that the additional share placement would be entirely bought by the state.

At the start of the September 2010, RZD's board approved another additional share issue worth 1.5 billion rubles, which was also for financing Olympic projects.

RZD is currently implementing four projects in Sochi, including two freight yards, an intermodal route Airport Adler-Sochi, an increase in the capacity of the Tuapse-Adler route (the construction of six kilometers on a two-way branch) and construction of the Sochi-Krasnaya Polyana branch.