OREANDA-NEWS. On 7 February 2008 the Board of Directors of JSC OGK-5 passed the resolution on the possible issuance of non-convertible interest-bearing certified exchange-traded bearer bonds in 2008 with mandatory centralized custody on MICEX, to be placed through public subscription.

During the discussion of the given issue it was declared that activities related to raising loan capital in the following three years will be the core financial activity of OGK-5. Besides financing capital costs and costs related to the implementation of the extensive investment programme, it is necessary to have tools for working capital financing.

The Board of Directors ordered the Director General of JSC OGK-5 to develop exchange bond issue parameters, hold necessary procedures on selection of candidates to organize the security issue and present said materials to the Board of Directors of the Company for future consideration.

While commenting upon the resolution of the Board of Directors, Mikhail Krupin, the CFO of JSC OGK-5, noted that exchange-traded bonds is the new tool on the Russian financial market, while on developed markets there has long been the analogue of this tool – commercial papers, which are very popular among market participants. “Considering the current credit history, credit rating and financial performance, we believe that OGK-5’s exchange-traded bonds will be able to find its investor even on the developing market, which will help the Company fairly quickly raise the required capital if needed”, he said.