On November 28, 2019, the Rosseti Center and Volga Region company (marketing brand: IDGC of Center and Volga Region PJSC) successfully closed the order book for the issue of exchange-traded bonds of the BO-02 series with a total nominal amount of 5 billion rubles at a coupon rate of 6.85% per annum. The maturity of bonds is 10 years. An offer is foreseen for the issue after 3 years from the date of placement. The nominal value of exchange-traded bonds is 1,000 rubles.
The initial benchmark coupon rate was set at 6.85-6.95% per annum. Investors showed increased interest in the issue, so the book was closed at the lower limit of the marketed range i.e. at 6.85%.
Major institutional investors, banks, and management companies took part in the transaction, as well as demand from individuals was attracted. The issue was oversubscribed by nearly three times.
The level of free liquidity in capital markets decreased by the end of the year. Therefore, the closure of the fourth market transaction among subsidiaries of the Rosseti group with a significant level of oversubscription confirms not only the high credit quality of the holding but also the degree of investor confidence in the assets of the country's electricity grid complex. This successful placement is an excellent headstart for further borrowing by the company on the public capital markets,” Egor Prokhorov, Acting Deputy General Director for Strategy of Rosseti, commented on the results of the bonds placement.
“We thank investors for their interest in our bonds. We were able to show a successful result thanks to well-coordinated teamwork with the Rosseti managing company and the placement organizers. "This is the lowest coupon level for Rosseti Center and Volga Region for all the time it has been present in the Russian debt capital market," said Igor Makovsky, Director General of Rosseti Center, the managing company of Rosseti Center and Volga Region.
The technical placement of the bond issue will take place on December 03, 2019 on the Moscow Exchange. The transaction was organized by Bank GPB (JSC), PJSC MOSCOW CREDIT BANK, PJSC Bank Otkritie Financial Corporation. Placement Agent: Bank GPB (JSC).