Moscow, 25 June 2021 JSC Atomenergoprom, the company that unites Rosatom’s civil assets, has placed its first issue of green exchange-traded bonds with a par value of RUB 10 billion. Investors’s demand for securities exceeded supply more than sevenfold. This is the first placement of exchange-traded bonds by a Russian issuer to finance renewable sources of energy.
The initial coupon rate was in the range of 7.70%-7.80% per annum. While the planned placement volume was 10 billion, the demand for securities exceeded 79 billion roubles. A sevenfold oversubscription made it possible to lower the coupon rate to 7.50% per annum, which corresponds to an effective yield of 7.64%. The par value of one security in this issue is 1,000 rubles and the bonds have a term to maturity of 5 years.
The bonds were issued by Sovcombank, Alfa-Bank, VTB Capital, Gazprombank, Credit Bank of Moscow, Otkritie FC Bank, Russian Agricultural Bank, and Sberbank CIB. The placement agent is Gazprombank. The bonds are being issued in the 001P series programme, which has a volume of up to 100 billion rubles inclusive.
The independent credit rating agency ExpertRA has confirmed that the bond issue complies with the green bonds principles set out by the International Capital Markets Association (ICMA), as well as with the provisions of VEB.RF’s guidelines for green finance investment activities in Russia.
ExpertRA has also assigned a rating of ruAAA to the bond issue.
Funds received from the placement of this bond issue will be used to refinance previously incurred expenses for JSC Atomenergoprom’s Wind Power programme. JSC NovaWind (Rosatom’s wind energy division) has already commissioned wind farms with a total capacity of 420 MW in the south of Russia. Three more wind farms with a total capacity of 300 MW will be commissioned by the end of the year in the Stavropol Krai and the Rostov Region. Reductions in greenhouse gas emissions are expected to amount to about 393,000 tonnes of CO2-eq per annum from the commissioning of all 660 MW’s worth of wind farm capacity.