Corporate Communications

VTB Capital acts as bookrunner of JSC FGC UES (Federal Grid Company) bonds

29 September 2010

VTB Capital acted as bookrunner of three issues of JSC FGC UES bonds. The issuer attracted a total of RUB 30bn. Orders came for approx. RUB 45bn worth of bonds, making this the largest transaction in the history of Russian local bonds.

Over 50 investors sent in their book bids, including major Russian and foreign banks. Bond Series 6 and 8 amounted to RUB 20bn (RUB 10bn each). The tenor is 3 years, with the coupon set at 7.15% per annum. Bond Series 10 worth RUB 10bn will mature in 2015, with a 7.75% coupon.

“We are happy with results of this offering. I want to thank all the investors who were involved in the bookbuilding process, for extending their trust to the Federal Grid Company. The proceeds of the bonds offering will finance the FGS investment program, one of the top-scale among Russian companies”, said Oleg Budargin, Chairman of the Board at JSC FGC UES.

Yuri Soloviev, President, VTB Capital: “In the 2 years of its operation, VTB Capital has participated in a number of transactions that are unique for Russia: VTB Bank Eurobond placement in Singapore dollars, Russian Sovereign Eurobonds issue, Russian Railways Eurobonds issue etc. We are pleased that VTB Capital is part of the largest transaction in the local market”.

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