OREANDA-NEWS. January 28, 2013.  FGC UES has set the coupon rate for its series 24 local rouble bonds at 8% per annum, 40 basis points lower than the guideline coupon. The bonds will mature 15 years from placement and have a put option 7 years after the sale.

The placement took place on the MICEX stock exchange as an auction to determine the coupon. This allowed the best possible price to be achieved and meant that the issuer was able to fully take advantage of the extensive interest shown by investors. During the auction 154 bids were submitted by Russian and international investors. Market demand had reached RUB 30 bln when the bidding process ended during the main trading session

The state company FGC UES is one of the few Russian corporate borrowers that have successfully used an auction to determine the coupon rate for a bond placement.

“We are very pleased with the outcome of the auction. This placement format is extremely similar to the one that the Ministry of Finances of the Russian Federation uses when it sells government bonds. The Federal Grid Company is continuing to lead the local corporate market by successfully opening up new market opportunities. We are grateful to the investors for their interest in this placement,” remarked Andrey Kazachenkov, First Deputy Chairman of the Management Board, member of the Management Board.

FGC UES is the first Russian company for the past year to carry out a bond placement with such a long maturity period. This placement has set a new put option and coupon rate benchmark for corporate sector non-financial borrowers who wish to procure long-term rouble financing.

The deal was arranged by Sberbank CIB1, Gazprombank and Renaissance Capital. Sberbank CIB was the technical underwriter. Each bond of the series 24 issue has a nominal price of RUB 1,000. The coupon period is 182 days.

Settlements for FGC UES’s bonds took place on the MICEX stock exchange on the same day as the auction – January 25, 2013.

Additional information:

FGC UES OJSC

Federal Grid Company of Unified Energy System Open Joint-stock Company (FGC UES OJSC) was incorporated in June 2002, during the reorganisation of Russia’s electrical power industry, as an organisation tasked with managing, maintaining and developing the Unified (all-Russian) National Energy Grid (UNEG).

The government of the Russian Federation is the largest shareholder of FGC UES with a 79.55% stake. Minority shareholders own 20.45% of the Federal Grid Company For more information, please contact:

Press Service of FGC UES
 Elena B. Tekanova
 Phone: +7 (800) 200-18-81, ext. 51-59
 E-mail: tekanova-eb@fsk-ees.ru

Sberbank CIB

The Corporate & Investment Banking Business was created as part of the integration of Sberbank of Russia and Troika Dialog. Sberbank CIB’s key areas of activity are corporate financing2, investment banking services, trade operations with securities, and private equity. Sberbank of Russia’s Corporate & Investment Banking Business provides integrated financial solutions and investment advisory services to its clients, which include major corporations, financial institutions, sovereign states and federal and sub-federal government bodies and organizations. Sberbank CIB is part of Sberbank of Russia’s Corporate Business Block.