RZD Places Exchange-Traded Bonds Worth 35 Billion Rubles

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Russian Railways (RZD) Issues 35 Billion Rubles in Exchange-Traded Bonds

Russian Railways (RZD), the national railway operator, has successfully issued 35 billion rubles worth of exchange-traded bonds (Series 001P-52R) at their nominal value.

Through an open subscription, RZD sold 35 million bonds, each with a nominal value of 1,000 rubles.

The bonds have a ten-year maturity period, with an option to redeem them after 3 years and 7 months.

The coupon period is set at 30 days.

The coupon rate for the entire period until the optional redemption date was fixed at 14.50% per annum, following the collection of bids. The initial coupon rate guidance was set at no higher than 14.70% per annum.

The placement was organized by Gazprombank, Alfa-Bank, Veles Capital, Lokobank, Moscow Credit Bank, Sber CIB, and Sinar Investment Bank. Gazprombank acted as the placement agent.

Overview provided by Alexey Grishchenko, Ph.D., Professor at the Department of Operational and Sectoral Management, Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.