Under an investment memorandum, the placement will finance preparatory work and the purchase of equipment for the construction of the Belene nuclear power plant (NPP) in Bulgaria, and pay off some expensive short-term loans, Atomstroyexport said.
"Up to two thirds of the placement will cover the preparatory stage of the Belene project and replenish [our] floating capital," Atomstroyexport said. "The remainder will be spent on expensive loan repayments."
The company will offer 1.5 million non-convertible bonds with par value of 1,000 rubles ($38.6). The bonds, with a term-length of four years, will be placed via public subscription on MICEX.
The placement will be organized by Russian Funds Investment Group with Russia's state-controlled foreign trade bank VTB and Gazprombank, the financial arm of Russian energy giant Gazprom, acting as a co-organizer and a paying agent, respectively.
Atomstroyexport has so far built over 30 power units for NPPs with an aggregate capacity of 14.6GW in 11 countries.
