Russian Railways (RZD) has set the coupon rate for the 1st coupon of the third issue of perpetual bonds of the 001B-03 series in the volume of 100 billion rubles at 7.25% per annum, which corresponds to a premium of 165 basis points to 5-year OFZ bonds, the report says. companies.
The collection of applications for the release took place on September 24 from 11:00 to 15:00 Moscow time.
Initially, the benchmark was set as a premium of no more than 175-185 basis points over 5-year OFZs. The placement volume was increased from “from 20” to 100 billion rubles.
The issue provides for a call option every 5 years from the moment the securities began to circulate.
The technical placement of the issue is scheduled for September 30, it will be held by closed subscription among qualified investors.
The organizers are VTB Capital, Credit Bank of Moscow (MOEX: CBOM), Rosselkhozbank, Sberbank CIB and Sovcombank.
Semi-annual coupons, the face value of one security is 1,000 rubles. For the issue every 5 years from the beginning of circulation, early repayment is provided at a price of 100% of the face value.
The rate of the 1st to 10th coupons is fixed and is determined by the results of the collection of applications.
In accordance with the legislation, the issuer has the right to unilaterally make a decision to refuse to pay the coupon on bonds. If the issuer refuses to pay the coupon yield, which is duly executed, VEB transfers funds to the account of NSD, opened to the issuer for the purpose of paying interest income to bondholders, in the manner and within the timeframes stipulated by the legislation of the Russian Federation and the issuance documentation, using subsidies received from the Ministry of Transport of the Russian Federation. The payment will be made on the date of the end of the coupon period, the decision to refuse payment of which was made by the issuer.
On the issue, an independent opinion was received from Expert RA on its compliance with the principles of green bonds.
According to the online presentation of the issue for investors, which took place on the Moscow Exchange (MOEX: MOEX), the proceeds from the placement will be directed to green projects.
The debut issue of perpetual bonds worth 30 billion rubles was placed at the end of June this year at the rate of 6.55% per annum. In July, Russian Railways placed a second issue of perpetual bonds for 20 billion rubles at a rate of 7.3% per annum.
On June 5, the Central Bank of the Russian Federation registered the program and prospectus of perpetual bonds of OJSC Russian Railways (RZD) of series 001B in the amount of up to 370 billion rubles inclusive or up to the equivalent of this amount in foreign currency. The bonds are intended for qualified investors, with the option of early redemption at the discretion of the issuer.
The issue of issuing such securities in early May was raised at a meeting on the development of transport, chaired by Russian President Vladimir Putin. Russian Railways General Director Oleg Belozerov then raised this topic in the context of possible problems with financing the CAPEX monopoly amid falling revenues from transportation.
In mid-May, Acting Prime Minister of the Russian Federation Andrei Belousov (who is also the head of the board of directors of Russian Railways) signed a decree allowing Russian Railways to place “perpetual” bonds worth 370 billion rubles. As part of the approved bond program, the company will be able to issue several perpetual bond issues, including in foreign currency (within the approved ruble limit).
The order stated that the securities “are intended for qualified investors – legal entities, with the possibility of early redemption at the discretion of their issuer.” VEB will buy them for 100 billion rubles. Also among the potential purchasers – “systemically important banks”, noted the source of “Interfax”. The timing of this support measure, according to the agency's interlocutor, is May-August.
Currently, there are 34 issues of Russian Railways exchange-traded bonds in circulation with a total volume of 583 billion rubles and 13 issues of classic bonds worth 210.2 billion rubles.