8 Dec 2011 13:21
Federal Grid Company successfully closed the order book of the RUR 15 bln bond issue, series 18, with 12 year maturity and 2.5 year put-option
Moscow, 7 December 2011 - Federal Grid Company of Unified Energy System ("Federal Grid Company" or the "Company") (ticker symbol: MICEX, RTS, LSE: FEES) successfully closed the order book of the RUR 15 bln bond issue, series 18, with 12 year maturity and 2.5 year put-option.
The issue was allocated among a wide range of investors which included banks, investment and management companies. About 12% of the total demand was formed by foreign investors.
The order book was opened on December 5th with 8.45-8.85% coupon rate indication. Despite the fact that bookbuilding passed in difficult market conditions, the transaction caused high interest from a wide range of the Russian and international investors. The total demand exceeded the nominal volume of the issue twofold and reached RUR 32 bln that became a record for the market from the moment of renewal of primary placements in October of this year.
Following the bookbuilidg results the Company decided to satisfy 43 bids. The coupon rate was set in the bottom line of a marketing range - at 8.50% p.a. level.
The lead managers of the transaction are Renaissance Capital, Gazprombank, VTB Capital, Sberbank of Russia, the lead co-manager - IFC METROPOL, the co-manager - IC Region.
The placement will start on December 12th.
The funds raised from the bond placement will be channelled to finance the Company's investment program.
Including the new issue, the total volume of the Company's bond issues outstanding will reach RUR 105 bln.
Contacts for investors and analysts
Alexander Duzhinov +7 (495) 710-90-64
Nadezda Sukhova +7 (495) 710-95-41
Tatyana Mayba 8 800 200-1881 (ext. 29-26)
Egor Toropov 8 800 200-1881 (ext. 22-75)
About Federal Grid
Federal Grid is the operator and manager of Russia's unified electricity transmission grid system. With over 121,000 km of transmission lines and over 311 thousand MVA of installed transformer capacity, it is the largest publicly traded electricity transmission company in the world. Federal Grid's business is to provide transmission and connection services. It maintains and develops the grid system and supervises grid facilities and infrastructure in 73 regions of Russia, in which it operates. Its customers are regional distribution companies, retail electricity suppliers and large industrial enterprises. The Company operates in an exclusive, competition free environment, and is regulated by the Government of the Russian Federation. The Company's revenue is mainly driven by the transmission tariff set by the Regulator,the Federal Tariff Service. From 1 January 2010 a new RAB (Regulatory Asset Base) tariff framework, designed to stimulate investment and operating efficiency, was introduced. The Company was incorporated in 2002 as part of reorganization of Russia's electrical power industry. The Russian Government is the largest shareholder with a 79.48% stake.
Further information can be found at www.federal-grid.com