On June 3, 2015 (Wednesday) Rosseti, JSC closed the book of applications for a debut market placement of its exchange-traded bonds of the BO-04 series for 10 billion roubles. The securities circulation period is 10 years, for this issue an offer was made for 3 years and an opportunity of early redemption by the decision of the Issuer 1.5 years from the date of placement.

The following leading Russian banks were the organizers of the transaction: VTB Capital, CJSC, Gazprombank, JSC and Rosbank, PJSC.

The coupon rate on the basis of the book of investors applications amounted to 11.85% per annum. Applications were received from 40 investors totalling 32.5 billion roubles, 27 of which were accepted by the Issuer.

'The debut placement of Rosseti, JSC has shown the high interest and confidence in our company. A significant part of investors is represented by managing companies for pension funds and insurance companies - the most conservative investors in the market. It, once again, confirms the high reliability of Rosseti, JSC as one of the key infrastructure companies in the economy of the Russian Federation,' said Oleg Budargin.

The funds raised from the securities placement will be used to refinance an existing loan portfolio in order to reduce the interest burden, which has increased over the past year due to crisis developments in the Russian economy. The centralized fund-raising of Rosseti, JSC for the needs of the power grids sector will help provide effective financing of needs of power grids subsidiaries of Rosseti, JSC while ensuring their financial stability and the investment attractiveness of Rosseti, JSC. The total economic effect from the placement of Rosseti's bonds will amount to 1.04 billion roubles due to the direct savings on the interest rate.

According to the Deputy Director General for Finance of Rosseti, JSC - Yegor Prokhorov - this debut placement is a result of systematic and persistent work, carried out by Rosseti, JSC since the moment of the Company's founding in April, 2013.

'To face the challenges of a radical increase of financing efficiency within the power grids sector and provision of financial sustainability of the company's subsidiaries (and the whole Group) Rosseti, JSC has performed consistent and serious preparation for the centralized attraction of investments, which involves obtaining a sovereign category rating (at the level of the Russian Federation) from the world's leading rating agency (Standard and Poor's), the preparation of a programme for exchange-traded bonds of Rosseti, JSC and the development of the necessary performance standards and regulations along with the adoption of appropriate corporate decisions. Rosseti, JSC has also provided the opportunity to enter international markets; at the moment, in accordance with the decisions of the Board of Directors, a Multi-Currency Euro-Bonds Programme is being prepared by the company. The current transaction demonstrates the possible economic and financial effects from our work in this area,' said Yegor Prokhorov.