MOSCOW, November 17 (RIA Novosti) - Russian railroad monopoly Russian Railways (RZD) has placed its sixth and seventh bond issues totaling 15 billion rubles ($520 million) on the Moscow Inter-Bank Currency Exchange (MICEX), the company's press office said Thursday.
The issue volumes are $347 million and $173 million, respectively; the terms are five and seven years.
Coupons on the bonds will be paid semi-annually. The rate of the first coupon payment was set by the auction at 7.35% per year for the sixth issue and at 7.55% per year for the seventh issue, with subsequent rates equal to the first.
CIT Finance Investment Bank and JP Morgan Bank acted as the bond issue managers.
The company will use long-term funds raised through its 2005 borrowing program to repay short-term loans to commercial banks earlier received to finance investment projects.
