IFC METROPOL has acted as a lead co-organizer for series 13 bond issue of JSC Federal Grid Company of Unified Energy System worth RUB 10 billion maturing in ten years. The issue was successfully completed on 5 July 2011. MICEX registered 49 transactions with the company’s bonds on the placement day.
As of the closing of the bidding book, demand exceeded supply by 2.5 times with the total value of bids from over 40 Russian and international investors amounting to RUB 27 billion. The issue’s coupon rate was 8.50%, or 40 basis points below the lowest limit of the initially announced level.

This is Russia’s first post-crisis market issue of local corporate bonds with a ten-year maturity. It sets a new coupon rate reference point for other borrowers in this sector wishing to raise long-term ruble financing.

Major corporate borrowers have been actively raising funds in international markets earlier by placing Eurobonds. The new bond issue by Unified Energy System has shown that Russia’s market currently has all prerequisites for meeting real sector’s long-term demand for financial resources.

This transaction was organized by Renaissance Capital, Gazprombank, VTB Capital and Sberbank of Russia with IFC Metropol acting as a lead co-organizer and Ronin Partners – as a co-organizer.

OJSC Federal Grid Company of Unified Energy System was established in accordance with Russia’s power industry reforming program as a company to manage the Unified National (Russian) Power Grid (UNPG). Its main lines of activities include: management of the Unified National (Russian) Power Grid; provision to subjects of the wholesale power market of services of power transmission and connection to the power grid; investment in the power grid’s development; proper maintenance of power grids;  engineering surveillance over the condition of power facilities. In 2010, UNPG grids supplied 470,648,072 billion KWh of electric power. OJSC Federal Grid Company of Unified Energy System is a participant in the corporate bond market.  Prior to series 13 bond issue the company had in circulation series 02 and 04 bonds worth RUB 7 billion and Rub 6 billion respectively with a five-year maturity.

Investment and Financial Company METROPOL was established in 1995. It provides broker services, services for reorganization and purchase and sale transactions, corporate anti-crisis management, raising debt and equity financing, sales of assets, and financial and corporate consulting. The company has accumulated major experience in public (IPO, SPO) and closed securities offering. National Rating Agency has rated IFC Metropol as AАА (maximum reliability).