MOESK mulling issue of 40 bln rubles in exchange bonds over 2 to 3 years
MOSCOW. Dec 29 (Interfax) - OJSC Moscow Unified Grid Company (MOESK) is considering the issue of 40 billion rubles in exchange bonds, which would be placed for two to three years, a source at the company told Interfax.
"The placement will depend on the market situation and the company's requirements. The main thing is registering the prospectus so that it will be possible to place later," the source said.
The company could place four issues each worth 10 billion rubles. "The maximum term for each issue is three years," the source said.
The first placement could take place in 2010. MOESK will require a total of around 20 billion rubles in funds next year, the source said.
The company's investment program in 2010 is not expected to exceed the level for 2009, coming to no more than 21 billion rubles. It was earlier reported that the company would finance investment with its own funds.
MOESK also is announcing two auctions in the framework of preparations for the bond issues. The auctions will bring in a market maker and an underwriting. The maximum starting price of the agreement for the first auction comes to 500,000 rubles. The auction bid should be 5% of the starting price.
The maximum starting price of the agreement at the auction for choosing an underwriting is 200,000 rubles with a bid of 5%.
Applications for both auctions are being accepted until January 26. The auction itself is slated for January 28.
MOESK is Russia's leading electrical grid company and is part of the state holding IGDC.