Transcreditbank Arranges 11th Bond Issue of JSC RZHD
OREANDA-NEWS On 03 December was announced, that JSC Russian Railways placed its series 11 bond at MICEX. The issue was arranged by TransCreditBank, Sberbank, VTB, Gazprombank and IC Troika Dialog.
The deal size is RUR11bn, with face value of each bond at RUR1,000. The issue matures in 7 years. The bond carries 14 semiannual coupons. The 1st coupon rate is set at 13.5% p.a. Rates of 2-3 coupons are equal to the 1st coupon rate, interest rates for coupons 4-14 will be set by the issuer. Investors are given a put option which is exercisable at par on the second business day after commencement of the 4th coupon period.
The issue was fully placed by meeting direct bids at fixed price and 1st coupon rate. Bookbuilding was completed one day before the launch date.
JSC RZhD has already announced its intent to apply proceeds of the deal towards implementation of the Company’s 2009 investment plan.
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