OREANDA-NEWS. August 1, 2007. A meeting of the Board of Directors of OJSC Russian Utility Systems (RUS) was held, which served to consider important matters concerning the company's business and its development.

Thus, the Board of Directors passed a decision to place OJSC RUS second series bonds with a total face value of 2.5 billion roubles via a public offering. The bond issue will reach maturity in around three years, on the 1092nd day from the placement commencement date. The bond issue is intended with a view to optimising the company's debt portfolio and financing the investment projects which RUS implements in Russian regions. The first bond issue of OJSC RUS worth 1.5 billion roubles was placed in April 2006 at 9.7% per annum. The company makes coupon payments under the bond issue on time and in full. Besides, the Board of Directors passed a decision to obtain a bridge loan. A part of the borrowed funds is expected to be paid off upon the placement of the RUS bond issue.

 The prospective projects of OJSC RUS include participation in managing heating assets in the city of Smolensk. A wholly-owned subsidiary called OJSC Smolensk Utility Systems will be established as decided by the OJSC RUS Board of Directors. The city government has expressed readiness to cooperate with the private operator as regards the management of the utility infrastructure and its development. The results of an analysis performed by OJSC RUS specialists have confirmed the possibility to organise reliable operation of the heating system in the city, while ensuring the required level of profitability.

One of the decisions passed by the Board of Directors concerns the termination of OJSC RUS's participation in the authorised capital of OJSC DVEUK-KS (Far East Power Management Company - Utility Systems).  At the moment, RUS owns a 49% shareholding in that company. The Board of Directors also considered several other issues regarding the operation of regional subsidiary companies.

A decision was also passed to call an extraordinary general meeting of OJSC RUS shareholders on 3 September, 2007.