Russian Railways prepares social ruble Eurobonds for 7-8 years - source

Russian Railways prepares social ruble Eurobonds for 7-8 years - source

MOSCOW (Reuters) - Transport monopoly Russian Railways (RZD) will hold a series of calls with investors, which will lead to the issuance of social Eurobonds denominated in rubles with a maturity of 7 to 8 years, a source in the banking community told Reuters.

The company instructed Gazprombank, JP Morgan, Credit Bank of Moscow (MCB), Sova Capital, UniCredit (MI: CRDI) and VTB (MCX: VTBR) Capital to organize a conference call with global investors on December 3, 2020 and a series of calls with investors starting from today.

Placement will follow depending on market conditions.

Russian Railways has developed a social financing system in accordance with international principles.

The company stated the following goals for spending the funds raised: creating an accessible transport infrastructure, including the reconstruction and construction of railway lines for passenger transport, healthcare and education (construction, reconstruction of healthcare facilities and medical institutions), and other social projects (protection of the population from coronavirus, elimination consequences of natural disasters).

Russian Railways intends to report on spending on social projects on its website https://eng.rzd.ru/en/9653/page/103290?id=18465#.

(Elena Fabrichnaya. Edited by Anastasia Teterevleva)