Federal Grid Places RUB10bn Series 12 Bond at 8.1%.

Federal Grid Company of Unified Energy System ("Federal Grid" or "the Company") (MICEX-RTS, LSE: FEES), the operator and manager of Russia's unified electricity transmission grid system, on 24 April 2012 successfully placed its RUB 10 billion series 12 bond with an annual coupon rate of 8.1%, maturing in 2019 with a 4-year put option.

After opening the order book on 23 April with initial annual coupon rate guidance of 8.2 - 8.4%, Federal Grid lowered its guidance to 8.1 - 8.2%. The book closed at the lower boundary of the updated range, with the coupon rate set at 8.1% per annum.

Despite challenging market conditions, the book was 1.4 x oversubscribed due to significant demand. The transaction generated considerable interest from a diverse range of first-rate Russian and international investors, including fund managers, banks and investment companies.

Renaissance Capital, Gazprombank, VTB Capital and Troika Dialog acted as lead managers for the deal, with IFC Metropol acting as co-lead manager.

The placement date has been set at 27 of April 2012.

The proceeds from this bond issue will be used to finance the current OJSC FGC UES investment programme.

Inclusive of this new issue, Federal Grid's gross debt outstanding amounts to RUB 115 billion.

http://uk.finance.yahoo.com/news/federal-grid-company-federal-grid-112017357.html