New bond issue: RZD sells USD 1000m in 2022 bonds with 5.70% coupon
RZD (Russia) on March 29, 2012 placed USD 1000m in bonds with a 5.70% coupon, maturing in 2022.The deal was done via SPV RZD Capital Limited. The bond was priced at 100%. JP Morgan, RBS, VTB Capital arranged the deal.
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Issuer, issue number: RZD, 2022
Type of debt instrument: Eurobonds
Issue status: outstanding
Type of placement: public
Par, currency of issue: USD, 200000
Amount: 1 000 000 000
ISIN: XS0764220017
End of placement: Mar 29 2012
Issue price: 100
Yield at Pricing: 5.7%
Coupon: 5.70%
Settlement Date: Apr 05 2012
Maturity date: Apr 05 2022
Issue Managers: JP Morgan, RBS, VTB Capital
Trading floor: Irish S.E.
Issuer profile:
Key Facts & Figures: Russian Railways • The second largest network in the world with 85,200 km of track – 43,000 km of which are electrified • Carries over 1.1 billion passengers and 1.1 billion tonnes of freight annually across 11 time zones • Responsible for 43% of Russia’s total freight traffic (including pipelines) and more than 41% of passenger traffic • Employs over 1 million people • A major contributor to the fast-growing Russian economy • Assets worth over USD 88 billion (as of 31/12/2008) • Russia’s fourth-largest company by revenue – over USD 41 billion for 2008 (according IFRS) • Comprises 987 enterprises and 165 subsidiaries • Rolling stock includes: o 20,100 goods and passenger locomotives o 624,900 goods wagons o 24,100 long-distance passenger carriages o 15,600 short-range passenger carriages Services and Infrastructure • Freight transportation • Long-distance passenger transport • Suburban passenger transport • Infrastructure services • Locomotive propulsion services • Repair and maintenance of rolling stock • Building infrastructure • Research and development Financials • State-owned joint-stock company • Charter capital over RUB 1 698,1 billion (01.01.2011) • One of Russia’s most profitable companies – net income over RUB 14.4 billion in 2009 The Russian Context • Because of the country’s huge territory and vast natural resources, a highly developed railway system is vital to Russia • Many of Russia’s natural resources are in remote, harsh and sparsely populated regions of Siberia and the Russian Far East that have bad road distribution and are far removed from the main population centres in European Russia • Rail connect 85 of Russia’s 89 regions and provides services to most major cities and have a direct impact on growth, industrial development and regional integration • Much of the population relies on the railways not only because of relatively few roads, huge distances and the remoteness of large parts of the country but also because Russian Railways is the biggest employer in the country Reform Program • The programme of reforms includes the update of production and technical facilities, renewal of track and rolling stock, greater efficiency and increased revenues, greater competitiveness and the higher motivation of railway personnel • Planned total investment in developing rail transport in Russia up to 2030 is USD 450 billion • The new lines will ensure transport to and from industrial areas and newly-developed mineral deposits • Important aims include the elimination of cross-subsidies and, in the longer-term future, partial privatisation Social Responsibility • A socially responsible company, Russian Railways human resources policy is strongly based on long-term investment in personnel • Russian Railways makes substantial investments in employees’ development and supports a large educational and training network specialising in the railway industry, as well as providing scholarships to students • The Company’s facilities range from pre-schools and schools to study centres, universities and R&D institutes specialising in railway transport and engineering, including 17 study centres and 33 technical railway centres • Russian Railways’ environmental programme has successfully reduced harmful emissions into the air, water and ground in recent years, even while increasing production • By providing attractive rail alternatives to many air routes, Russian Railways reduces the air pollution resulting from air travel/04,2011 JSC Russian Railways («RZD») is the largest railroad transportation company in Russia and one of the largest in the world. Its chartered capital is 1 594 516 219 000 rubbles. 100% of "RZD" shares are controlled by the State. Key operations of RZD are following: freight transportation , long distance and commuter passenger transportation , provision of locomotive traction, repairing services of rolling stock, construction of infrastructure facilities, research and development, social infrastructure maintenance. It covers about 42% of the freight turnover and 40% of passanger turnover within Russia.
Outstanding issues:
15 issue(s) outstanding worth RUR 220 000 000 000
2 issue(s) outstanding worth USD 2 500 000 000
1 issue(s) outstanding worth GBP 650 000 000
Issuer's rating:
Moody's Investors Service Baa1/Stable Int. Scale (foreign curr) 15.01.2010
Moody's Investors Service Baa1/Stable Int. Scale (loc. curr.) 15.01.2010
Standard & Poor's BBB/Stable Int. Scale (foreign curr.) 22.12.2009
Standard & Poor's BBB/Stable Int. Scale (loc. curr.) 22.12.2009
Standard & Poor's ruAAA National Scale (Russia) 22.12.2009
Fitch Ratings BBB/Stable Int. Scale (foreign curr.) 12.02.2012
Fitch Ratings BBB/Stable Int.l Scale (local curr.) 21.02.2011
Fitch Ratings AAA(rus)/Stable National Scale (Russia) 21.02.2011
Moody's Interfax Rating Agency Aaa.ru National Scale (Russia) 15.01.2010
National Rating Agency AA+ National scale (Russia) 06.07.2007
