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Rosseti organized the attraction of debt investors in bonds of subsidiaries for 13 billion rubles at historically low rates

4 June 2020

On 29 May 2020, the Rosseti Centre and Rosseti Centre and Volga Region companies, with the organizational support of PJSC Rosseti, successfully closed the order books for exchange-traded bonds of series 001P-02 and 001Р-01 with a total volume of 13 billion rubles. For the issue of Rosseti Centre in the amount of 5 billion rubles, the coupon rate was 5.60% per annum, Rosseti Centre and Volga Region in the amount of 8 billion rubles - 5.65% per annum. The bonds have a maturity period of three years.

In the marketing process, the price range was several times reduced from the initial level of 5.75% - 5.90%. The total market demand amounted to 25 billion rubles, which allowed Rosseti Centre to close the deal at a minimum rate of 5.60% per annum, and Rosseti Centre and Volga Region to increase the issue from 5 to 8 billion rubles at a rate of 5.65% per annum.

“We have chosen a good moment. The positive market conditions, formed on the expectations of the monetary policy of the Bank of Russia, allowed us to attract debt investors at a rate comparable to the key rate of the Central Bank. The today’s transaction, like the previous one on the issue of bonds of PJSC Rosseti, has a minimum spread for OFZs (90 bps) in the current situation. This year we are entering the market for the sixth time: increased demand and investor confidence in the electric grid complex allowed us to increase the total volume of issues and raise money at record minimum rates,” commented Egor Prokhorov, Deputy Director General for Strategy of Rosseti.
“Bond issuance is a worthy alternative to bank lending, which allows us to borrow money under current conditions at more attractive rates and spend it to refinance existing obligations, reducing debt servicing costs. We thank investors for their interest and trust, and the parent company Rosseti for team and professional work,” commented Igor Makovskiy, General Director of Rosseti Centre - the managing organization of Rosseti Centre and Volga Region.

The organizers of Rosseti Centre’s bond issue were Bank GPB (JSC), JSC VTB Capital, Sberbank CIB; Rosseti Centre and Volga Region - Bank GPB (JSC), JSC VTB Capital, PJSC Sovcombank. The placement agent was Bank GPB (JSC).

Technical placement of the bonds for both companies will take place on 5 June 2020 on Moscow Exchange.

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