On December 11, 2015, Rosseti PJSC finished placing ÁÎ-06 Series exchange bonds for the total nominal price of RUB 6 bln with a maturity date of 30 years. The coupon rate has been established at 10.29% p.a. The bonds were placed in favor of Vnesheconombank (VEB).
The terms of the issue provide the issuer with the option of early redemption, if the rate of return on FLB falls by more than 3 percentage points in comparison with the set rate of the coupon.
Bank GPB (JSC) served as organizer and underwriter of the issue.
The main parameters of the investment of retirement savings into Rosseti PJSC bonds in 2015 were approved by the Supervisory Board of Vnesheconombank in May 2015. The money was borrowed to refinance the credit portfolio of affiliated companies of Rosseti PJSC. Bond placement transactions were carried out within the concept plan of the treasury department of Rosseti PJSC.
According to Rosseti PJSC Deputy Director for Finances Egor Prokhorov, in today’s challenging market conditions, Rosseti PJSC can afford loans on much better terms than its affiliated companies. Centralization and coordination of public borrowings at the level of head office makes it possible to achieve better conditions on deposit rates and leads to a considerable decrease in borrowing costs for the Rosseti Group of Companies overall.
Deputy General Director for Finances Egor Prokhorov, commenting on the placement of Rosseti PJSC shares, said:
“We have dutifully tracked and analyzed market conditions with the aim of choosing just the right moment for the transaction with Vnesheconombank. The year was difficult, with the markets demonstrating considerable volatility, but we finally managed to select the optimal moment for placement.
As of today, Rosseti PJSC has the lowest coupon interest rate among all corporate borrowers in 2015; the borrowing term is 30 years.
In addition to the transaction with VEB, in 2015 Rosseti PJSC carried out three successful placements of its own bonds, and attracted financing for the needs of the electrical grid complex. Now we can confidently say that we have selected just the right borrowing strategy, and the last bond placement transaction of the year serves as additional confirmation of this fact. Overall, the Rosseti Group of Companies managed to save more than RUB 2 bln in interest across all transactions.