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Comments by Andrey Solovyev, Global Head of DCM at VTB Capital, for Reuters

30 January 2013

Russian Railways issues 675 million Swiss francs Eurobond

Reporting by Oksana Kobzeva; Writing by Katya Golubkova

MOSCOW, Jan 30 (Reuters) - State-run Russian Railways (RZhD) raised 675 million Swiss francs ($732 million) via a Eurobond issue, one of arrangers told Reuters.

Andrey Solovyev, global head of debt capital markets at VTB Capital, said the issue had 5-year and 8-year tranches.

The issue's 5-year, CHF525 million tranche was upsized from the originally-offered CHF350 million, at a yield of 2.177 percent, IFR reported.

The 8-year CHF150 million tranche was priced to yield 2.73 percent.

The issue was rated at an investment grade Baa1/BBB/BBB by agencies Moody's, Standard & Poor's and Fitch.

Barclays and Credit Suisse were the other arrangers in the transaction.

Russian Railways said in December it planned to borrow 203 billion roubles ($6.8 billion) in 2013.

Russian borrowers raised a total of around $53 billion via Eurobond issues last year and have issued debt this year to profit from positive risk sentiment towards emerging markets. ($1 = 0.9221 Swiss francs) ($1 = 30.0505 Russian roubles)  

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