TGC-1 is one of fourteen territorial generating companies formed by electricity monopoly United Energy System during the restructuring of Russia's power sector.
Alexander Chukunov said after the bond placement, TGC-1 would issue additional shares worth around 60 bln rubles ($2.24 bln) to finance the company's investment program for the next five years.
TGC-1, launched in October 2005, comprises generating companies stretching from the Baltic Sea to the Barents Sea, operating in St. Petersburg, the Leningrad Region, the Republic of Karelia, and the Murmansk Region. The company has 54 power plants with total installed capacity of 5,734 MW, and sells some of its power to nearby Scandinavia.
TGC-1 General Director Valery Rodin said the company's bond issue could reach 10 billion rubles ($373 mln).
"The bond issue will be placed in the first quarter of 2007, in a volume of 5-10 billion rubles," he said.
