OREANDA-NEWS. On 08 April 2008 was announced, that IDGC of Centre declared completion of the transaction on attraction of the credit line in the amount of 10.5 billion rubles.

"Such large-scale loan is one of the precedents in the history of the modern electric power industry', General Director of JSC IDGC of Centre Evgeniy Makarov declared. ‘Some time ago we had to be financed in the small volume and for a very insignificant term. This caused the company's impossibility to realize socially important investment projects, counting only on own sources of financing. After consolidation of all regional grid companies with the uniform operational company which was registered on 31 March, 2008, IDGC of Centre, certainly, becomes very attractive in the market of loans'.

The decision on attraction of the credit in the amount of 10. 5 billion rubles was taken by the Management Board of RAO UES of Russia as the unique shareholder of JSC IDGC of Centre, at the extraordinary meeting on 27 March. The given transaction was also approved by the Company's governance bodies, the competence of whom includes decision-making on approval of the corresponding transactions. The transaction was approved also by shareholders, including the majority ones.

In total IDGC of Centre involved borrowed funds in five credit organizations: 1.3 billion rubles will be given by JSCB Bank of Moscow (JSC), 2.8 billion rubles - by JSC Gazprombank, 2 billion rubles – by JSB ORGRESBANK (JSC), 1.4 billion rubles – by JSC Raffeisenbank, and 3 billion rubles  - by JSCB Rosbank.

'The average rate of attraction is from 10 up to 12.5 %', Vladislav Kapitonov, Financial Director of IDGC of Centre noted. 'Credits were involved for the term of from 60 days to 5 years'.

All the borrowed funds are planned to be directed to financing of industrial-economic and investment activity of the company in strict conformity with the business plan of IDGC of Centre for 2008:

1.5 billion rubles - covering of the short-term cash breaks connected with untimely payments of the marketing companies

6 billion rubles - replenishment of turnaround assets for financing the current industrial and economic activities

3 billion rubles - financing of the investment program.
 
'All the extra funds shall by provided due to increase in efficiency and recoupment of the construction of facilities the credits are attracted for', Evgeniy Bronnikov, Deputy General Director for Economy and Finance said, 'and also due to guarantees from the regulator within the limits of agreements between IDGC and administrations of 11 areas', he added.

In 2008, including due to credit resources, IDGC of Centre plans to put into operation 537 MVA of the transformer capacity and 2,123 km of electric mains. The borrowed funds will also be directed to modernization of the system of the commercial account of the electric power, development of IT-infrastructure, integration of public municipal networks within the limits of agreements.

In total, the investment in the current year will equal 8.5 billion rubles.

The most significant projects of IDGC of Centre in 2008 are:

-construction of "Sokol" 110 kV substation of Yarenergo branch with the established capacity of 80 MVA which will provide electricity supply of the same microdistrict constructed within the limits of the national project "Affordable Housing".

- re-equipment of 35/6 kV Substation No. 10 of Voronezhenergo branch with translation to the voltage of 110 kV and installation of 2 transformers of 126 MVA capacity.

- expansion of "Sovetskaya" 110/6 kV substation of Bryansnkenergo branch with installation of the transformer of 40 MVA and reconstruction of the 110 kV open distribution unit.

-construction of 110 kV "Maiskaya" substation of 50 MVA capacity of Belgorodenergo branch -construction of "Davydkovskaya" 110/10 kV substation  of 50 MVA capacity with 110 kV overhangs in Kostroma for power supply of new microdistricts.

- construction of "Volokno-Teplichanaya" 110 kV OL (6 km) of Kurskenergo branch for power supply of development of Kursk industrial zone. Construction of "Rodniki" 110/10 kV substation for development of infrastructure of the south-west part of the Kursk city.
- construction of "Manezhnaya" and "Universitetskaya" 110 kV substations is planned to be continued in the  Lipetsk area in 2008, providing electricity supply of the constructed microdistrict and national projects "Modern Public Health Services", "Affordable and Comfortable Housing". Orelenergo branch plans expansion of "Zapadnaya" 110/10 kV substation - the 2nd stage of construction (2х63 MVA) for power supply of the constructed housing complex. The Tambov area plans construction of 135 km OL-0.4-10 kV for power supply of agrarian and industrial complex facilities. Tverenergo plans overall reconstruction of "Vagzhanovskaya" substation for development of the infrastructure of the western part of Tver.

Summing up teamwork, representatives of the bank community marked perspectivity and long term of such cooperation.

'IDGC of Centre is for us a strategic partner,' Igor Dubonosov, General Director of the Corporate and Investment Business Department of AJCB Bank of Moscow, said. 'Company has proved its financial solvency, and we are ready to further consideration of the issue of increase in the credit line'.