Mosenergo (RTS ticker MSNG) has started placing 10-year bonds worth 5 billion rubles (about $177 million) on the Moscow Inter-Bank Currency Exchange, the company said in a statement.
The first coupon rate of interest-bearing bonds was defined at 7.65%.
The bond issue consists of 5 million unconvertible bonds with a par value of 1,000 rubles (about $35.5) each.
Mosenergo intends to use the proceeds from the bond placement to refinance its liabilities and optimize its financial performance. Gazprombank, a subsidiary bank of Russian natural gas giant Gazprom, is the bond issue's manager.
Mosenergo is the first Russian power company to complete reformation. Since April 1, 2005, it has been the country's largest regional power generator, integrating 17 electric power stations with a total capacity of 10,600 megawatts.
Electricity monopoly Unified Energy System (UES) holds 50.87% of shares in Mosenergo, while Gazprom controls more than 25% of the company's stock.
