Federal Grid of Unified Energy System : Rosseti successfully closed the order book for exchange bonds of Rosseti FGC UES with coupon rate of 7.50% amounting to 10 bn rubles

Rosseti successfully closed the order book for exchange bonds of Rosseti FGC UES with coupon rate of 7.50% amounting to 10 bn rubles

06/02/2021

On June 2, 2021 Rosseti FGC UES successfully closed its book of orders for exchange bonds of 001P-03R series for a total nominal value of 10 bn rubles at the coupon rate of 7.50% p.a. Maturity of the bonds is 15 years, with an offer expected for the issue in 7 years after the date of placement. The par value is 1000 rubles per bond.

The issuance has been focused on institutional investors. Intendedly, this leverage will be utilized to finance the company's adopted investing plan and to refinance the debt raised earlier for similar purposes.

'The public debt market has recently seen a decline in investor interest for investments in the 5+ years horizon. This is happening against a background of ambiguous market conditions, expectations of further tightening of monetary policy and, as a consequence, the growth of rates on the market of ruble bonds, as well as plans to increase government borrowing. Despite that, our 7-year placement took place at one of the lowest spreads to federal loan bonds for this duration among corporate issuers on the Russian debt capital market. Once again, investors' confidence in Rosseti FGC UES is confirmed. We express our special gratitude to them for their high assessment of the company's credit quality,' Pavel Grebtsov, Deputy General Director for Economics and Finance at Rosseti, commented on the results of the placement.

'Rosseti FGC UES is not a frequent borrower on the Russian market but one of the most efficient state-owned companies with the highest credit quality. The combination of these factors and the temporary 'window of positive expectations' in the market were factors in the success of the deal. Since the beginning of the year there have been few successful transactions in the first tier, especially for such a period; nevertheless, the very nature of business allows the company to attract long-term financial resources even in difficult market conditions and in view of the expected further growth of rates,' commented Eduard Dzhabarov, Managing Director for DCM at Sberbank CIB, on the results of the placement.

The technical placement of the bond issue will take place on June 09, 2021 on the Moscow Exchange. The organizer and placement agent is Sberbank CIB.