1 Dec 2010 19:39

RZD could place Eurobonds in 2011 - Yakunin

MOSCOW. Dec 1 (Interfax) - OJSC Russian Railway (RZD) is mulling the option of placing Eurobonds in 2011, the company's president, Vladimir Yakunin, told journalists in Moscow on Wednesday.

He did not specify the possible size of the issue. "Yes, we are thinking about the possibility of placing these shares," he said.

He said: "we are in a stable financial position and we were unable to forecast bearing in mind the initial financial plan". He added that RZD's total transport operations in comparison with the planned figure had increased by over 100%.

Yakunin said that the railway monopoly had no plans to borrow in 2010. "We will take as much as necessary. We have enough money at present," he said.

Commenting on the company's borrowing plans for 2011, Yakunin said: "We have found a decent market for taking funds, which is relatively inexpensive and for the long haul." He did not specify the market in question, only saying that the company would be able to refinance earlier raised short and expensive borrowing through a placement.

Yakunin did not say whether the company would annul an issue of ruble bonds totaling 85 billion rubles and valid for placement in 2010. "As for the ruble bonds, which expire on December 24 [2010], I would prefer not to answer that question," he said.