22 Sep 2010 18:30

TGK-5 opens book on 5 bln rubles in debut bond issue

MOSCOW. Sept 22 (Interfax) - TGK-5 , a territorial generating company controlled by Viktor Vekselberg's IES Holding, has opened the bid book on a first series of bonds totaling 5 billion rubles, an employee at one of the organizing banks told Interfax.

The rate guidance for the first coupon of the seven-year bonds is 8.75%-9.5% annually, corresponding to a yield of 8.94%-9.73% to the three-year offer.

Alfa Bank , Sberbank Russia , Sviaz Bank and TransCreditBank (TCB) will accept offers from investors. The book will remain open until 4:00 p.m. Moscow time on October 12, 2010.

The bonds will be sold in a public placement planned for October 15.

The Federal Financial Markets Service (FFMS) registered the TGK-5 bond issue on June 4. On the same day it registered an issue of bonds from another IES genco, TGK-9 , totaling 7 billion rubles. TGK-9 placed the seven-year bonds in mid-August with the first coupon rate set at 8.1%.

Yet another IES genco, TGK-6 , placed bonds in September. Its seven-year bonds totaling 5 billion rubles were placed with the first coupon at 8.3%.

IES said previously that funds from the placement would be used to finance the investment programs at the gencos, which plan to add a combined total of 3,000 megawatts to capacity before 2015. Investment at the four companies in 2010 will total up to 24 billion rubles.

TGK-5 includes 11 combined heat and power plants in Chuvashia, Udmurtia and Marii El and in Kirov region.

TGK-6 is the main supplier of electricity and heat in the Nizhny Novgorod, Vladimir, Ivanovo and Penza regions and in Mordovia.

TGK-9 includes power plants in Sverdlovsk region, Perm territory and Komi. Installed capacity totals 3,279 megawatts of electricity and 16,866 Gcal/hr of heat.

IES controls TGK-5, -6, -7 and -9. It plans to move its gencos to consolidated shares. It has not made a final decision on whether TGK-7 will be included in the consolidation. The matter is currently being discussed with the other shareholders in the genco.