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On 19 November 2019, the company Rosseti Centre (the brand of IDGC of Centre, PJSC) carried out the placement of exchange-traded bonds of series 001Р-01 in the form of a tender to determine the coupon rate. The issue was carried out within the framework of the program of exchange bonds 4-10214-A-001P-02E dated 21 December 2016. The bonds have a maturity period of 5 years; an offer is foreseen for the issue after 3 years from the start date of the placement. The nominal value of the exchange-traded bonds is 1,000 rubles.
The initial benchmark coupon rate was set at 6.95% per annum. The issue was widely distributed among investors. The final register received applications from banks, management companies and investment companies, as well as from institutional investors. Increased demand for the issue allowed to reduce the benchmark for the coupon rate twice, as a result of which Rosseti Centre set the coupon rate at 6.85% per annum.
“We decided to take advantage of favourable market conditions and conduct the third placement of bond issues of subsidiaries, taking into account the positive experience of the previous placements of Rosseti Moscow Region, Rosseti Urals. However, in this case, we did not use the standard practice form for determining the coupon rate used by most corporate borrowers - bookbuilding, but conducted an auction. This provided us with work directly with the market and institutional investors, which contributed to the implementation of a full-fledged market placement and the achievement of excellent results,” commented the results of the placement Egor Prokhorov, Deputy Director General for Strategy of Rosseti.
General Director of Rosseti Centre, Igor Makovskiy, noted that this transaction confirmed the high confidence of the market participants in the electric grid company, which is part of Rosseti’s Group, as a high-quality borrower.
“We are grateful to investors for their interest, as well as to colleagues from the management company Rosseti for their common team and professional work. This is the minimum coupon level for Rosseti Centre for the entire history of borrowing in the local debt market. As a result of the transaction, it was possible to surpass the successful result of last year’s placement and update the historical level of the company’s public borrowing rate by reducing the coupon rate by 0.10% per annum,” stressed Igor Makovskiy, General Director of Rosseti Centre.
The underwriters of the transaction were GPB Bank (JSC), PJSC CREDIT BANK OF MOSCOW, PJSC Bank Otkritie Financial Corporation. The placement agent was GPB Bank (JSC).