Cloud-init does not configure properly a second network interface

Solution In Progress - Updated -

Issue

Starting Virtual Machines ('Instances' in Openstack terms) with more than one network interface gets only the first interface configured. The second one never gets configured properly:

[[32m  OK  [0m] Started Network Manager Script Dispatcher Service.
[    4.338220] alg: No test for crc32 (crc32-pclmul)
         Starting Hostname Service...
[    4.381829] intel_rapl: no valid rapl domains found in package 0
[    4.445412] intel_rapl: no valid rapl domains found in package 0
[    4.452120] intel_powerclamp: No package C-state available[[32m  OK  [0m] Started Hostname Service.

[    4.478450] intel_powerclamp: No package C-state available[    4.479741] IPv6: ADDRCONF(NETDEV_UP): eth0: link is not ready
[    4.489561] IPv6: ADDRCONF(NETDEV_UP): eth1: link is not ready
[    4.644843] cloud-init[487]: Cloud-init v. 0.7.6 running 'init-local' at Thu, 15 Jun 2017 14:18:17 +0000. Up 4.62 seconds.
[[32m  OK  [0m] Started Initial cloud-init job (pre-networking).

Red Hat Enterprise Linux Server 7.3 (Maipo)
Kernel 3.10.0-514.el7.x86_64 on an x86_64

host-192-168-40-15 login: [   10.823843] cloud-init[834]: Cloud-init v. 0.7.6 running 'init' at Thu, 15 Jun 2017 14:18:23 +0000. Up 10.79 seconds.
[   10.880467] cloud-init[834]: ci-info: +++++++++++++++++++++++++++Net device info+++++++++++++++++++++++++++
[   10.880656] cloud-init[834]: ci-info: +--------+------+---------------+---------------+-------------------+
[   10.880935] cloud-init[834]: ci-info: | Device |  Up  |    Address    |      Mask     |     Hw-Address    |
[   10.881283] cloud-init[834]: ci-info: +--------+------+---------------+---------------+-------------------+
[   10.881538] cloud-init[834]: ci-info: |  lo:   | True |   127.0.0.1   |   255.0.0.0   |         .         |
[   10.881800] cloud-init[834]: ci-info: | eth1:  | True |       .       |       .       | fa:16:3e:10:7f:b8 |
[   10.882084] cloud-init[834]: ci-info: | eth0:  | True | 192.168.40.15 | 255.255.255.0 | fa:16:3e:77:3e:ee |
[   10.882329] cloud-init[834]: ci-info: +--------+------+---------------+---------------+-------------------+
[   10.882590] cloud-init[834]: ci-info: +++++++++++++++++++++++++++++++++++Route info+++++++++++++++++++++++++++++++++++
[   10.882850] cloud-init[834]: ci-info: +-------+-----------------+--------------+-----------------+-----------+-------+
[   10.883133] cloud-init[834]: ci-info: | Route |   Destination   |   Gateway    |     Genmask     | Interface | Flags |
[   10.883387] cloud-init[834]: ci-info: +-------+-----------------+--------------+-----------------+-----------+-------+
[   10.883652] cloud-init[834]: ci-info: |   0   |     0.0.0.0     | 192.168.40.1 |     0.0.0.0     |    eth0   |   UG  |
[   10.883931] cloud-init[834]: ci-info: |   1   | 169.254.169.254 | 192.168.40.1 | 255.255.255.255 |    eth0   |  UGH  |
[   10.884284] cloud-init[834]: ci-info: |   2   |   192.168.40.0  |   0.0.0.0    |  255.255.255.0  |    eth0   |   U   |
[   10.884545] cloud-init[834]: ci-info: +-------+-----------------+--------------+-----------------+-----------+-------+
[   11.942255] cloud-init[2153]: Cloud-init v. 0.7.6 running 'modules:config' at Thu, 15 Jun 2017 14:18:25 +0000. Up 11.89 seconds.
[   12.266130] cloud-init[2408]: Cloud-init v. 0.7.6 running 'modules:final' at Thu, 15 Jun 2017 14:18:25 +0000. Up 12.22 seconds.
ci-info: +++++++Authorized keys from /home/cloud-user/.ssh/authorized_keys for user cloud-user++++++++
ci-info: +---------+-------------------------------------------------+---------+---------------------+
ci-info: | Keytype |                Fingerprint (md5)                | Options |       Comment       |
ci-info: +---------+-------------------------------------------------+---------+---------------------+
ci-info: | ssh-rsa | b7:96:65:4d:6f:7d:8f:7e:f5:1e:84:79:80:58:28:b4 |    -    | arvydas@arvydas-teo |
ci-info: +---------+-------------------------------------------------+---------+---------------------+
ec2: 
ec2: #############################################################

Result: eth1 does not have an IP or Network mask.

Environment

rhel-guest-image-7.3-36.x86_64.qcow2 and earlier

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