Russia's Severstaltrans places $175 mln in Eurobonds

Severstaltrans, Russia's largest freight transit company, said Monday it had placed three-year Eurobonds totaling $175 million, RIA Novosti reports. Severstaltrans, which specializes in multimode transportation in Russia and former Soviet republics and reported sales of $1.6 billion in 2006, said the Eurobonds carried a coupon rate of 8.5% per annum. The volume of bids exceeded the placement volume by 40%. Investors from Switzerland subscribed for 22% of the company's Eurobonds, Asian investors for 6% and investors from Great Britain for 51%, Severstaltrans said.

Severstaltrans is a subsidiary of leading Russian steelmaker Severstal [RTS: CHMF].