OREANDA-NEWS. April 08, 2013. The order book was closed for Russian Railways’ series 28 bonds worth RUB 20 bln. The bonds have a maturity of 15 years, a 7-year put option and a coupon period of 6 months.

At the start of book-building the coupon range was set at 8.25-8.50% annually. During book-building, 55 investor bids were received. As are result the issue was oversubscribed by more than twofold and the coupon guidance was lowered threefold only a few hours before the book was closed. Following book-building, the first coupon for the bonds was set at 8.20% annually. This is 5 basis points less than the lower boundary of the coupon guidance. The rates for the 2-14 coupons are the same as that of the first coupon.

Around 10% of demand came from foreign investors. Management companies – a target investment audience for Russian Railways – made up around 15% of demand. Approximately 75% of demand was generated by Russian banks and investment firms.

Settlements for the deal will take place on the MICEX Stock Exchange on April 9, 2013.

The placement was arranged by Sberbank CIB, VTB Capital, Gazprombank.