JSC “MOESK” Reports on Placement Results of Third Issue of Commercial Papers for RUR 5 bln.

JSC “MOESK”, is one of the largest distribution electric grid companies in Russia, reports on the successful holding of an auction to determine the 1st coupon’s rate under placement of the third issue of the commercial papers of series BO-03.

On 13.02.2013 JSC “Moscow United Electric Grid Company” held an auction to place certified interest-bearing non-convertible commercial papers of series BO-03 with a circulation period 3 years (1,092 days) with the volume of RUR 5 bln. Following the auction’s results, the coupon’s rate has been established at the level of 8,5% per annum, which is by 0,15% lower than the initially declared maximal price of the bidding.

GPB (OJSC) and CJSC VTB Capital came forward as the placement organizers.

First Deputy Director General of JSC “MOESK” Alexander Inozemtsev declared: “We have decided to make use of the favorable market conjuncture and implemented the third placement of the bonds’ issues, taking into account a positive experience of two previous placements in 2012. Thus, in the given case we have not made use of the standard practiced form to determine the coupon’s rate of the bonds under a public offering, used by the majority of the corporate borrowers – book building, but rather held an auction. Such format is traditional for the bonds placement of the Russian Federation and RF constituent entities. Besides that, a recent success of JSC “FGC UES” has demonstrated the given decision’s efficiency. An auction – is a tougher form, both for the issuer, and for the investor, this the procedure is maximally open and accessible, under which nobody has ever doubted in the allocation – the earlier and cheaper a person put a bid, then he/she acquired a paper. The funds, obtained in the course of a bonded loan placement, shall be directed to refinance the current borrowings”.

Let us recall, that on 21.09. and on 30.10.2012 JSC “MOESK” placed two issues of 3-year commercial papers of series BO-01 and BO-02, each issue with the volume of RUR 5 bln.