FGC to raise additional 40 bln rubles by year's end
MOSCOW. Oct 10 (Interfax) - OJSC Federal Grid Company UES (FGC) plans to raise up to 40 billion rubles in additional funds by the end of 2012, the company's first deputy CEO Andrei Kazachenkov told Interfax.
"We will raise 20 billion-30 billion-40 billion rubles in various instruments by the end of the year. This might be loans, Eurobonds, exchange bond and so forth," he said, adding that this will depend on the market. The funds will be raised within the framework of the company's current business plan.
In addition, FGC registered infrastructure bonds in this instrument. During the Adam Smith Institute's fourth international forum Russian Electricity 2012 on Wednesday, Kazachenkov said that the company has prepared a series of proposals for developing infrastructure bonds.
For instance, the company has proposed introducing the idea of infrastructure bonds in the law "On the securities market" and defining them according to their components. "Also, we are proposing to stimulate investment in similar instruments all the way to tax rebates for investors and reducing the profit tax to 15%," he said.
Kazachenkov added "Including refinancing, we raise around 100 billion rubles a year."
He also said that this instrument, as infrastructure bonds, help long-term funds at a low cost.'
It was earlier reported that Russia's Federal Financial Markets Service (FFMS) registered nine classic bond issues series 21 through 29 for the company in June with terms of 15 years worth a combined 125 billion rubles. Furthermore, the MICEX allowed the company's exchange bond issues BO-01 through BO-08 worth a combined 100 billion rubles for trading during placements in June. The company's board of directors approved the issue of up to 100 billion rubles in Eurobonds. At the same time, FGC filed a request with Vnesheconombank (VEB) to open a loan facility worth up to 100 billion rubles for 15 years.
On August 8, FGC placed its 15-year 22nd series bonds worth 10 billion rubles. The company placed its 15-year 25th series worth 15 billion rubles on October 2.
The company has 125 billion rubles in 12 bond issues in circulation.
FGC UES owns and manages electric grid assets in Russia's united national electricity grid. The state owns 79.48%. Gazprom and MMC Norilsk Nickel are minority shareholders.
