Russian Railways to close $600 million loan deal in October

Russian railroad monopoly Russian Railways (RZD) plans to secure a syndicated $600 million loan from international banks October 19, the company's press release said Friday.

"The deal on attracting a syndicated $600 million loan from international banks at a 4.825% interest rate will be concluded on October 19," RZD President Vladimir Yakunin said after a board of directors meeting.

As of September 19, RZD had already attracted $540 million of the targeted $600 million from an international syndicate that includes underwriters Barclays Capital, Dresdner Kleinwort Wasserstein, HSBC Holdings, Raiffeisenbank, which have each loaned $60 million, along with Tokyo-Mitsubishi Bank, Mizuho Corporate Bank, KfW, Bank Austria Creditanstalt, WestLB, and Calyon, each providing $50 million, RIA Novosti reports.

Russian Railways is the 100% state-owned operator of the country's railroad infrastructure and the main freight and passenger rail carrier.