Russian railways place 14th series bonds worth $ 280 million on secondary market

OJSC Russian Railways (RZD) has placed its 14th series bonds worth 9.0629 billion rubles (about $ 280 million) on the second market, the company said in a press release.

The bonds were placed at face value of 1,000 rubles (about $ 31) each. Investors submitted 19 applications to acquire 9.7 billion rubles (about $302 million) in bonds. The guidance for acquiring the bonds in the applications came to 100%-100.25% of face value.

It was earlier reported that RZD collected applications on July 17-18. Investment company Troika Dialog  and VTB Capital organized the transaction.The company bought back 60.4% of this issue in the middle of April through an offer. Therefore, a total of 9 billion rubles in bonds was reacquired.RZD placed the six-year bonds on the MICEX in April 2009 by open subscription. The organizers were TransCreditBank, VTB Capital, Gazprombank, Troika Dialog and Sberbank.

The bonds have 12 semiannual coupons. The rates for the coupons are set every half year based on the results from the Central Bank's fixed rate for weekly REPO auctions and margins. The first coupon rate was set by the issuers at 15%, second coupon - 13.4%, third coupon - 11.06%, fourth coupon - 9.87%, fifth coupon - 9.75%, sixth coupon - 9.98%, and coupons seven through - 7.85%. The bonds mature in April 2015.

The company currently has 13 classic bonds (including the 14th series) and one exchange bond issue in circulation worth a combined 195 billion rubles.

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