Interfax reported that Directors at Russian Railways have approved plans to issue 200 billion rubles in bonds.

According to the report, the company will register eight issues of exchange bonds totaling RUB 100 billion and maturing in three years with the MICEX Stock Exchange in November and seven issues of unsecured bonds totaling RUB 100 billion and maturing in 10 to 15 years with the Federal Financial Markets Service in December to January.

RZD said it would offer a 20th series of RUB 20 billion, 21st and 22nd series of RUB 10 billion each, 23rd to 26th series of RUB 15 billion each in conventional bonds and exchange bonds Bo-01-04 for RUB 15 billion each and Bo-05-08 for RUB 10 billion each.

RZD has never tried to raise capital with exchange bonds which do not take as long to register and place as conventional bonds and do not have to be placed within a set timeframe. Mr Vadim Mikhailov senior VP of RZD said "We plan to place RUB 30 billion to RUB 40 billion in exchange bonds in Q4 2009."

He said that however RZD will continue to raise long term funding with conventional bonds to enhance its loan portfolio.

(Sourced from Interfax)