OREANDA-NEWS. July 15, 2013. Sberbank CIB has organised the provision of financing2 to MIPC JSC in the form of two credit lines totalling RUB 7.4 bln.

The loan agreements were approved by the company’s Board of Directors on June 25, 2013. Under the conditions of the credit contracts, funding with a renewable limit will be provided starting from the date of signing of the agreements until October 2013. The deal was arranged by the Sberbank CIB joint team and the Moscow Bank of Sberbank of Russia.

Andrey Likhachev, General Director of MIPC JSC, commented: “We decided to procure the loans due to the need to replenish the company’s working capital, including for current financial activities and optimisation of the credit portfolio. The lines of credit that were arranged by our colleagues from Sberbank CIB will help ensure that MIPC’s production programme – part of the preparation for the 2013/2014 heating season – is financed on time.”

Igor Serov, Managing Director and Head of the Corporate Clients Division, Client Management Department at Sberbank CIB, remarked: “Year in, year out we have cooperated with MIPC, the largest electricity and heat company and an enterprise that plays a significant social role nationwide. Sberbank has for a long time worked together with Russia’s most important infrastructure enterprises and understands that they must operate smoothly. I am certain the synergy created by our mutually beneficial cooperation will promote the development of sustainable energy in the country as a whole. As we once again help promote the growth of MIPC’s business, we are ready to cooperate with them on their new projects.”

In accordance with the loan contracts, the periods for repaying the borrowed funds are up to two and up to three years.

Information for editors:
MIPC JSC (Moscow Integrated Power Company JSC) is the Russian capital’s leading infrastructure company. It supplies thermal energy and hot water to Moscow and a number of cities nearby in the Moscow Region. The company produces, transports, distributes and sells thermal energy and also generates electricity.

The company provides uninterrupted supply of heat to Moscow’s 13.4 million inhabitants and operates the world’s most extensive heat and power systems. The company operates a heating grid that is over 16,000 km in length.

MIPC services 226 thermal plants (43 district heating plants, 45 boiler heating plants, and 138 small boiler and autonomous heating units) with a total output of 17,529.2 gcal/h, and also eight electricity production facilities, including six gas turbine power plants, one small combined heat and power plant and one energy complex with a total electrical output of 193.3 megawatts and thermal output of 130.8 gcal/h. The company provides heat and hot water to over 70,000 buildings, of which 32.6 are residential properties.

As a result of the reorganisation of the company in October 2012, MIPC became the largest vertically integrated enterprise in the world that produces, transports, distributes and sells heat energy and has earnings of over RUB 100 bln.

The shareholders of the company are the Moscow City Department of Transport which holds an 89.98% stake, OJSC MIPC-Finance (3.32%), and others (6.70%).