The winners are three banks out of six which proposed the best conditions of crediting.

On August 18, IDGC of North-West carried out the open auction for the right to sign the agreement for the rendering of financial services concerning the opening of the revolving lines of credit and the crediting insurance for the total amount of RUR 4 billion by all eight lots. The auction took place by all the lots.

Six banks expressed the desire to take part in the auction, among them were the banks JSC “IDGC of North-West” have been productively cooperating with for a number of years (JSC “VTB Bank of North-West”, North-West bank of Sberbankk of Russia, JSC “Gazprombank”), as well as new banks partners (JSC “AKB “Svyaz-Bank”, LLC Globeksbank, JSC “Bank of Moscow”). The total amount of the applied requests in the auction accounted for RUR 9.8 billion which twice exceeds the necessary amount determined by the Company.

The winners of the auction are JSC “Bank VTB of North-West”, JSC “Bank of Moscow”, JSC “AKB “Svyaz-bank” which proposed best crediting conditions.

“By the results of the carried out auction they plan to sign the agreements for 1.5-3 years with the possibility to attract tranches with the term of no more than 3 years with the stake of 15-25 per cent less than the cost of the current contracts”, announced Anna Povetkina, Finance and Corporate Financing Department Head. According to her assessment, the proposed conditions of crediting are better than the conditions of the current contracts, including the agreements signed by the results of the auction, carried out one month earlier.

“By the results of the auction it is possible to make the conclusion on banks trust to IDGC of North-West and despite of the crisis, on their readiness to present the necessary loans for appropriate conditions”, the company representatives thinks.

The Company’s positive image influence, according to IDGC of North-West management is the merit of the perfect credit history during its whole life and the positive financial result proved by the results of the reporting for 2008, 1 quarter, 1 half year of 2009 according to RAS, and financial stability of IDGC of North-West, by the results of the officially published financial statement for 2008 prepared in accordance with IFRS (International Financial Reporting Standards).

Attracted credits are planned to be directed to the refinancing of the loan indebtedness and the current activity including the repairs of power equipment.