On April 23, 2020, Rosseti and Rosseti FGC UES successfully closed the order books for the issues of ÁÎ-001Đ-02 and 001P-05R exchange-traded bonds with a total nominal amount of RUB 20 billion at a coupon rate of 6.50% per annum. The maturity/offer term is 5 years. The nominal value of exchange-traded bonds is RUB 1,000.
Major institutional investors, banks, and management companies took part in the transaction. The investor demand for company bonds made it possible to raise loan-based funding on the unique conditions: the coupon rate was 6.5% per annum for both companies (the federal loan bond spread is 90 basis points), which is significantly lower than the available bank lending rates.
“Despite the economic situation caused by the spread of coronavirus, the changes in energy prices, the deteriorated situation in the global financial markets alongside market volatility and growing credit stress, we have seen some stabilization in the local debt capital market. Even in such difficult conditions, when investors pledge an additional risk premium, we have a good opportunity to raise funds using the cost parameters which are significantly lower than bank lending. We highly appreciate the investor confidence in the high credit quality of the Companies of Rosseti Group despite high macroeconomic risks and uncertainty. The funds from the placement of Rosseti bonds will be transferred to subsidiaries and affiliates in order to refinance more expensive loans, which will allow us to save up to 3% per annum on group’s loan portfolio servicing depending on subsidiaries and affiliates”, commented Egor Prokhorov, Acting Deputy General Director for Strategy, Rosseti.
The bond issue of Rosseti FSK UES will be technically underwritten on April 29, and that of Rosseti - on April 30 on the Moscow Exchange. The transaction was organized by Sberbank CIB, PJSC "MOSCOW CREDIT BANK" and BC Region. Placement Agent: Bank GPB (JSC).