International Olympic Committee president Jacques Rogge (second left) and members Russian application committee: Governor of Krasnodar Territory Alexander Tkachev (left) and president of the Olympic Committee of Russia Leonid Tyagachev (right) in Guatemala
Photo: Dmitry Azarov
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Bond Market: Kubanenergo Gets Olympic Discount
The placement of ruble-denominated Kubanenergo bonds took place yesterday. It is the first issuer on the debt market involved in preparations for the 2014 Olympics. Increased investor interest in items of infrastructure in the Southern Federal District provided the company better results than it would have had before the International Olympics Committee chose Sochi. The cost of the loan was 0.45 percent lower for Kubanenergo than had been expected.
This 3-billion ruble bond placement was Kubanenergo's first . Analysts and Alfa Bank, the organizer of the placement, predicted that the company would be able to borrow rubles at about 8.3-percent annual interest. That was the price of the first bids by potential purchasers. An hour and a half later, when the sum of the bids was close to 5 billion rubles, investors began to lower their bids. Finally, the interest on the coupon of three-year Kubanenergo bonds was set at 7.85 percent.
OAO Kubanenergo is made up of 11 electric grid enterprises that provide electricity to Krasnodar Territory and the Republic of Adygea. The company's operating revenue last year came to 1.5 billion rubles. Its net profit was 66.3 million rubles. In May 2006, the Promregionholding company (which is affiliated with LUKOIL executives) acquired 26.6 percent of the company. The remainder of the stock belongs to RAO UES of Russia and is under the control of the state.
Besides Kubanenergo, Severstal-avto and cable-maker Rosskat placed ruble-denominated bonds yesterday. They also received discounts of 0.2-0.3 percent.
www.kommersant.com
All the Article in Russian as of July 26, 2007
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