24 Sep 2010 18:53

TGK-2 completes placement of 5-bln-ruble BO-01 bond issue

MOSCOW. Sept 24 (Interfax) - Russian generating company OJSC TGK-2 completed on Friday placement of exchange-bond series BO-01 of 5 billion rubles, the company said.

The genco placed 80% of these bonds for 4.032 billion rubles on September 21.

The first-coupon rate on the bonds has been set by book building at 9% per annum. The investor bid book was open from September 2 to 16. the issue organizers are Rosbank , TCB Capital, and Svyaz Bank .

No offer was announced on the three-year securities. Coupon rates for the entire period of circulation will be the same 9%.

The MICEX Stock Exchange on August 26 admitted these bonds to trading in the process of placement with the continuation of listing procedures.

TGK-2 announced earlier that the main aim of the exchange-bond issue is extending borrowing timeframes. The bonds mature in 2013, by which time TGK-2 anticipates positive operating results and profits. The genco figures it will get into the black in 2011, and is expecting to turn net profits of 2.5 billion rubles, EBITDA of 2.2 billion rubles, and an EBITDA margin of 7.6%.

The company expects it will end 2010 with losses of roughly $400,000.

TGK-2 projects net profits of 1.3 billion rubles in 2013, EBITDA of 5.8 billion rubles, and a margin of 12.7%.

TGK-2 has 2,582 megawatts of power and 12,473 Gcal/hour of heat capacity at power plants in the Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl regions. Sintez Group is the main shareholder in the genco.