27 Aug 2009 14:10

Russian Railways starts placing 11.3 bln rubles in additional shares in favor of govt

MOSCOW. Aug 27 (Interfax) - Russian Railways (RZD) has begun placing 11.318 billion rubles in supplementary shares in favor of the government, the company said in a statement.

The company will place 11.318 million common shares with par value of 1,000 rubles each in a closed subscription. The placement price is 1,000 rubles per share.

The placement of the shares will end no later than one year after the share issue was registered.

Prime Minister Vladimir Putin signed a decree in early July on the injection of 11.3 billion rubles into the charter capital of RZD via a supplementary share issue.

Of these funds, 8.318 billion rubles will be earmarked to support RZD's investment program, including 6 billion rubles for the construction of the 53-kilometer Yaiva-Solikamsk rail section, which will bypass the Berezniki sinkhole.

The remaining 2.3 billion rubles are state compensation for RZD's expenditures on transport benefits provided to students during the holidays in 2008.

An additional 3 billion rubles will be earmarked for the purchase of products from Tver Train Car Plant.