26 Mar 2010 17:22

RZD places $1.5 bln in 7-yr Eurobonds at 5.739% pa

MOSCOW. March 26 (Interfax) - Russian Railways placed on Friday $1.5 billion in seven-year Eurobonds at 5.739% pa, a source at VTB Capital, one of the placement organizers, told Interfax.

The deal was launched Thursday evening with yield of 245 basis points to swap. The bid book was more than 5-fold over-subscribed, the source said.

RZD's president Vladimir Yakunin was quoted by the company as saying: "the multiple oversubscription during the roadshow proves not only the interest of investors in the company's securities but also the success of the enterprise's structural reforms in railway transport, which has created the conditions for raising sector investment."

RZD was looking to place a seven-year benchmark, or an issue of more than $1 billion. The organizers of the issue were JP Morgan, Barclays Capital, and VTB Capital.

An unofficial yield guidance for the bonds of 275 bp to average market swap appeared on Wednesday. The official guidance was announced Thursday morning - 250-260 bp to swap, roughly yielding 5.73%-5.83% to maturity.