OREANDA-NEWS. July 5, 2011. JSC Federal Grid Company of Unified Energy System (“Federal Grid” or the “Company”, Ticker: FEES), the operator and manager of Russia’s unified electricity transmission grid system, announces that it has successfully completed a ten-year domestic Ruble-denominated bond placement for the value of Rub 10 billion.

As at the closure of the order book the debt issue was oversubscribed by over 2.5 times. Over 40 large Russian and international investors subscribed to the placement. Banks and private investors made up 67% of the total placement value, while fund managers made up 12% and investment companies contributed 21% of the total value.

The coupon rate for the issue was 8.50%, which was 40 basis points below the initial coupon guidance.

Renaissance Capital, Gazprombank, VTB Capital and Sberbank of Russia were Joint Lead-Managers of the bond issue.

Andrey Kazachenkov, Deputy Chairman of the Management Board, commented:

“We are very pleased with the results of this bond placement. We view its success as a vote of confidence by Russian and international investors in Federal Grid, its investment profile and growth strategy. We are proud to be the first Russian company to successfully place a ten-year domestic bond issue after the financial crisis. The long-term financial planning model based on the RAB regulation helps to facilitate fundraising at favorable rates”.