Energy Systems of East, EBRD sign 4-bln ruble loan deal
MOSCOW. Dec 5 (Interfax) - RAO Energy Systems of East and the European Bank for Reconstruction and Development (EBRD) Wednesday signed a 12-year loan deal for 4 billion rubles, an Interfax correspondent reports from the signing ceremony.
OJSC RusHydro , which controls Energy Systems of East, also signed a guarantee agreement to build the Vostochnaya CHP plant in Vladivostok, The loan is being taken out to fund the construction of the plant and to refinance outstanding debt - the EBRD issued a ten-year loan of 8 billion rubles to RusHydro in 2010 to optimize the Energy Systems of East balance sheet.
Yevgeny Dod, the chief executive of RusHydro, said at the ceremony that the credit could be enlarged in time. He recalled that the Russian president had recently signed a decree to recapitalize RusHydro to the tune of 50 billion rubles to fund investment projects in the Far East. "We did not plan for this to suffice for all Far Eastern projects," Dod said, adding that the outstanding funds would be covered internally and by borrowing.
Reports have said the loan will be issued at the MosPrime Rate plus not more than 3.45% pa.
Energy Systems of East started to build the Vostochnaya plant, which will be powered by gas. Capacity will be 139MW electricity and 420 Gcal/h heat. Project costs are 10.2 billion rubles.
RusHydro's Dod also said the company expected to close the sale of Far East Distribution Grid Company (FEDC), which is part of Energy Systems of East, by the end of the year. He said all the corporate procedures had been completed, but that closure depended on the reorganization of OJSC Federal Grid Company UES (FGC) .
Energy Systems of East in early 2012 approved a valuation for FEDC of 19.3 billion rubles, but FGC considered that to be double the real value. Energy Systems of East approved a valuation of 13 billion rubles in September.
The asset is to be paid for in equal installments to be made at least once per quarter and payment should be completed by June 30, 2014. The money raised will be used to fund RAO ES of East investment projects.
The decision to sell was taken in line with government resolution No. 1174 from July 7, 2011, according to which the Energy Ministry and Federal Property Management Agency Rosimuschestvo were asked to ensure integration of RAO ES of East grid assets at FGC.
FEDC serves about 55,000 km of electricity transmission lines and around 700 substations in Amur region, Primorye and Khabarovsk territories, the Jewish Autonomous Region and south Yakutia. It has charter capital of 910.33 billion common shares with par value of 0.01 rubles each.