The Boards of TGC-1, PJSC OGK-2 and PJSC Mosenergo have decided to join the Gazprom Group's centralised cash flow and liquidity management system (cash pooling). The cash pooling leader is PJSC Gazprom.
PJSC Gazprom (borrower) signed a loan agreement with TGC-1 (lender) on 13 December 2019, as well as with PJSC OGK-2 and PJSC Mosenergo (lenders) on December 19. The model of this cash pooling system also provides for conclusion of loan agreements, in which TGC-1, OGK-2 and Mosenergo will be borrowers, and Gazprom will be the lender.
The cash pooling system is a global financial management system of large holding companies. Its implementation creates an additional tool of financial support of TGC-1, OGK-2 and Mosenergo, which allow for improving their liquidity management efficiency and receiving higher interests for the provision of free cash funds.
TGC-1 (part of Gazprom Energoholding Group) is a leading producer and supplier of electricity and heat in the North-West of Russia. TGC-1 comprises 53 power plants within four constituent entities of the Russian Federation: St. Petersburg, the Republic of Karelia, and Leningrad and Murmansk Oblasts.
TGC-1's installed electric capacity is 6.95 GW, and heat capacity is 13.75 thousand Gcal/h. Major Shareholders: Gazprom Energoholding LLC (51.79%) and Fortum Power and Heat Oy (29.45%).
PJSC OGK-2 is a heat generating company consisting of 12 operating power plants: Surgutskaya GRES-1, Ryazanskaya GRES, Kirishskaya GRES, Stavropolskaya GRES, Novocherkasskaya GRES, Troitskaya GRES, Krasnoyarskaya GRES-2, Cherepovetskaya GRES, Serovskaya GRES, Pskovskaya GRES, Adlerskaya TPP, and Groznenskaya TPP. The controlling shareholder is Gazprom Energoholding LLC (wholly owned subsidiary of PJSC Gazprom).
PJSC Mosenergo is the largest regional power generating company in Russia. Its installed electric capacity amounts to 12.8 thousand MW, and heat capacity Ś to 43.2 thousand Gcal/h. The company's power plants supply over 60% of electricity to the Moscow Region and account for about 90% of Moscowĺs heat energy (excluding the annexed territories).
PJSC Gazprom consistently improves the Gazprom Group's centralised cash flow and liquidity management system. By the end of 2018, the Group's material cash pooling system comprised 322 participants.