Russian Railways to Start Marketing Debut Eurobond

17.03.2010 (17:36)

OAO Russian Railways, operator of the world’s largest railroad network, plans to start marketing its debut Eurobond in London next week, Chief Executive Officer Vladimir Yakunin said.

Representatives of the state-run company will meet with potential investors in London on March 25-26, Yakunin told reporters in St. Petersburg today. The state-owned company hired Barclays Capital, JPMorgan Chase & Co. and VTB Capital to organize the sale, according to a Feb. 26 statement.

Russian Railways, the biggest issuer of ruble-denominated debt, is turning to international debt markets as Russia seeks to sell sovereign foreign-currency bonds for the first time since the 1998 domestic debt default. Yakunin earlier indicated the company plans to sell $1 billion of 10-year bonds in April.

Russian Railways’ debt is rated Baa1 by Moody’s Investors Service, three levels above non-investment grade, and one rank lower at BBB at Standard & Poor’s, the same as Russia’s sovereign credit rating.

By Anastasia Ustinova and Denis Maternovsky

www.businessweek.com 
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