IDGC Holding postpones bond issue to refinance debt at subsidiaries
SERGIEV POSAD. Sept 24 (Interfax) - IDGC Holding has decided against issuing 12 billion rubles in bonds in the near future to refinance debt at two subsidiaries, preferring instead to use bank loans, Deputy General Director Alexei Demidov told Interfax.
The average interest rate on IDGC Holding's debt portfolio is below 8.6% and the average time to maturity is 32 months, he said.
IDGC Holding has already refinanced roughly 50 billion-60 billion rubles in debt. There is about 10 billion rubles in debt remaining to be refinanced.
IDGC Holding may decide to place the bonds. "Our prospectus gives us until May," Demidov said.
the Federal Financial Markets Service (FFMS) registered a 1st and 2nd series of bonds totaling 5 billion rubles and 7 billion rubles respectively in mid-May. The proceeds from the placement were to be used to refinance debt at IDGC of Center and Volga Region and Lenenergo . The placement was expected to occur at the beginning of summer 2010 with yields in the range 8%-9%.
State-controlled IDGC Holding includes 11 inter-regional electricity distribution grids.
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