OJSC Russian Railways' (RTS: RZHD) (RZD) board of director decided at a meeting last Friday for the placement of an additional share issue worth 11.3 billion rubles, the company said in a statement.
The company will place 11,318,400 common shares at a face value of 1,000 rubles by closed subscription. The shares will be offered to the Russian government.
At the start of July, Russian Prime Minister Vladimir Putin signed an order for the injection of 11.3 billion rubles from the federal budget into RZD's charter capital. Of these funds, 8.3184 billion rubles will be earmarked for supporting the company's investment program, including the construction of a 53-kilometer railway section in Yaiva-Solikamsk, which will bypass the sinkhole at Berezniki.
An additional 3 billion rubles will be earmarked for the purchase of production from OJSC Tver Vagonostroitelnyi Zavod.