Russian Railways carried out an additional placement of green perpetual subordinated Eurobonds for CHF 200 million. The yield on the securities will be 3% without the right to redemption until March 2027, the press service of Gazprombank reports with reference to the vice-president of the credit institution Denis Shulakov.
The listing was carried out on the SIX Swiss Exchange, the issue was placed with a premium to par at a price of 100.638%. Order book demand exceeded CHF 200 million. Applications were also received from investors from Switzerland, Russia and other countries.
“Due to high demand from international investors for green assets and a successfully chosen market entry strategy for placing an additional issue, Russian Railways managed to achieve a yield of 3% at a price of 100.638, which is higher than the par of previously issued bonds and at the same time lower than the coupon rate of the initial issue of 3.125% … Thus, it was possible to improve the effective rate of the entire increased issue in circulation by 450 million Swiss francs to 3.0694% and provide savings in borrowing of this systemically important state-owned company on its debt portfolio, “Shulakov dismissed, his words are quoted in the message.
The volume of the initial issue of perpetual Eurobonds by Russian Railways in March 2021 amounted to 250 million Swiss francs with a coupon rate of 3.125%. The funds from the additional placement will be used to finance and refinance the company’s “green” projects, the press service added.
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