Atomenergoprom to issue RUB195 billion of bonds

8 September 2009

Rosatom nuclear companies will gain a new access to funds after the Atomenergoprom board of directors has decided to issue a RUB195 billion ($6.24 billion) publicly-traded bond series. The bonds will cost RUB1,000 and mature in five years. State corporation Rosatom is securing all the bond floatations.

The moneys will refund short-term loans and financing investments for 2009-2010. Particular beneficiaries include Energoatom (implementation of NPP construction program), TVEL (modernization and renewal of nuclear fuel production), ARMZ Uranium Holding (development of mining assets in Russia and abroad within joint ventures), TENEX and United Company Enrichment Sublimation Complex (modernization and renewal of production facilities with the shift to a new generation of gas centrifuges), and Atomenergomash (investments into nuclear engineering for implementation of the NPPs’ new units commissioning program).

Atomenergoprom executive director Kirill Komarov said: "Considering the duration of NPP building cycle and today’s conditions of Russian financial market, the possibility to attract investments via funded loan is an effective instrument as regards to the terms of borrowed funds attraction as well as to the industry loan portfolio management cost-saving. 195 billion RUR is the maximum sum. Issues will be placed in accordance with the needs of the industry’s enterprises for debt financing and with market conditions.

"Funds received from the bonds issue will be a significant contribution not only in nuclear power enterprises, but in the revival of the real sector of economy as well. As capacities increase always brings development of power engineering industry and construction and installation complex and other adjacent areas. Besides the tax base for federal and regional budgets increases."

Atomenergoprom's revenue in 2008 was RUB290.5 billion, disregarding the joining date of subsidiaries and affiliates. Revenue in January-June 2009 was RUB146.5 billion, with profit of RUB14.4 billion.

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