FGC to select organizer for 125 bln ruble bond issue
MOSCOW. April 7 (Interfax) - OJSC Federal Grid Company (FGC) has announced a tender to select an organizer of a bond issue worth no more than 125 billion rubles, the United portal of state purchases said in a statement.
The company is accepting applications until May 6 when applications will be opened. The results of the tender will be tallied on May 26.
The maximum tender price is 737.5 million rubles. The tender security rate comes to 36.875 million rubles and the guarantee on contract executive - 73.75 million rubles.
The company told Interfax that the bond placement in order to raise financing for FGC's investment program, which comes to 952.4 billion rubles for the period until 2014. Investment this year has been approved at 189.6 billion rubles but the company recently announced plans to increase the 2011 investment program by an additional 20 billion rubles. This proposal has been sent for approval with the Energy Ministry.
The proposal to increase investment appeared after the government issued an instruction to reduce energy company revenues in order to restrain price spikes for electricity for end consumers within 15%. For instance, the revenue for FGC, according to the government, which be reduced by 5 billion rubles by smoothing out the RAB-tariff this year to 5%.
FGC placed 50 billion rubles in bonds last year (six issues set to mature over 10 years).
Several years ago FGC had plans to issue five-year ruble-based Eurobonds worth 14 billion rubles but the placement did not take place owing to market trends.