Russian Railways enjoys better borrowing conditions on international markets than other Russian companies
Russian Railways’ President Oleg Belozerov held a conference call on the Company's performance in October and the 10 months of 2017 to the end of October.
Speaking about the results achieved, Belozerov noted that Russian Railways had successfully placed rouble-denominated bonds on the international capital markets as part of the Company’s 2017 debt strategy.
Bonds in the amount of 15 billion roubles with a term of 7 years were placed on 19 October 2017. The final rate was fixed at 7.9%, which is 0.35% lower than the rate on the last loan issued on the Russian domestic market with a comparable maturity.
Foreign investors accounted for 40% of the issue, with the greater part represented by investors from the United Kingdom.
The issue was the Company’s second deal this year and the fourth such placement since Russian Railways entered the international markets in 2010.
As a result of the issue, Russian Railways achieved the lowest coupon rate in the Company’s history in placing rouble-denominated Eurobonds, as well as the lowest rouble rate among Russian issuers in the international debt market since January 2013.
The total volume of circulating rouble bonds on the international capital market currently stands at 82.5 billion roubles, which makes Russian Railways the largest issuer of obligations in Russian currency abroad.
Analysing the Company’s performance indicators, Oleg Belozerov noted that during January-October 2017, tariff freight turnover increased by 6.5%, while tariff freight turnover taking into account empty wagon runs of privately owned wagons was up by 6.2% compared to the previous year.
More than 1,045 billion tons of freight were shipped, 3% more than in the same period last year.
In the 10 months to the end of October 2017, almost 933 million passengers were transported, 8.5% more than during the same period last year.
The labour productivity of the Company’s employees actually engaged in transportation increased by 9.5% compared to the same 10 months in 2016 and was 1.8% above the plan.