Press Releases / 04.02.2013

Press Release as of 04.02.2013


Main Road OJSC

AK&M Rating Agency confirmed the ‘A’ credit rating (positive outlook) assigned to infrastructure bonded loan 4-03-12755-A issued by OJSC Main Road as per the national scale.

The ‘A’ rating indicates that the bond issue is a highly reliable bonded loan. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.

Bonded loan 4-03-12755-A was placed on November 22, 2012 pursuant to the concessionary agreement for the financing, construction and toll operation of a new junction of the Moscow Automobile Ring Road and the federal highway M-1 'Belarus' Moscow – Minsk. The nominal value of the bonded loan was RUB 8 billion. The bond issue placed with a 10% discount from the nominal value for a period of 18 years assumes annual coupon payments. The loan will be repaid in equal amounts in the last eight years of the loan period.

 

In 2013, AK&M Rating Agency rated OJSC Main Road, the issuer of bonded loan 4-03-12755-A, ‘A’ as per the national scale, with a positive outlook. The rating of bonded loan 4-03-12755-A is largely supported by the issuer’s credit standing and the efficient implementation of the highway construction and operation project.

OJSC Main Road is a special-purpose vehicle established solely for implementing the building and operation project of the toll highway “New junction of MKAD (Moscow Automobile Ring Road) and the federal highway M-1 'Belarus' Moscow – Minsk” (a connecting highway between MKAD near the road interchange with Molodogvardeyskaya street, and the federal highway M-1). In pursuance of this public-private partnership project, a 30-year concessionary agreement was concluded specifying OJSC Main Road as the concessionary and the Russian Federation (Federal Road Agency) as the concession provider (hereinafter referred to as the concessionary agreement). Total cost of the highway construction (capital costs) incl. VAT is RUB 25.5 billion. The project is financed with borrowed funds (bonds) and funds allocated from the RF Investment Fund.

Construction of the road has been in progress since 2010. As if the end of 2012, total investments in the project exceeded RUB 15 billion. The amount of construction works completed meets the target. Some of the previous borrowings have been already repaid. The Company’s current liabilities on its bonded loans in circulation amount to almost RUB 17.6 billion. Completion of the construction project is expected in late 2013, commercial operation will start in January 2014.

 

OJSC Main Road is a special purpose vehicle established 11/13/2007 by a consortium of investors including ALPINE BAU (Austria), BRISA-Auto-estradas de Portugal (Portugal), FCC (Spain), LEADER Management Company, Stroygazconsulting LLC, OJSC Gazprombank for the construction of a new junction of MKAD (Moscow Automobile Ring Road) and the federal highway M-1. On August 5, 2009, a concessionary agreement for the financing, construction and toll operation of the “New junction of the Moscow Automobile Ring Road and the federal highway M-1 'Belarus' Moscow – Minsk” was concluded between the Russian Federation, on the one hand and OJSC Main Road, on the other hand.

 

OJSC Main Road has placed three bond issues being in circulation. Bonded loan 4-03-12755-A (the total nominal amount being RUB 8 billion) was placed 11/22/2010, final maturity date being 10/30/2028; bonded loan 4-06-12755-A (the nominal amount being RUB 8.17 billion) was placed 12/28/2012 and will mature on 12/8/2028; bonded loan 4-07-12755-A was placed 11/20/2012, its nominal amount if RUB 1.4 billion, maturity date is 10/30/2029.

In 2012, AK&M Rating Agency rated bonded loan 4-07-12755-A ‘A’, with a positive outlook; in 2013, the Agency assigned the ‘A’ credit rating (stable outlook) to bonded loan 4-06-12755-A.

 

This press release is based on the statement of assigning a credit rating to bonded loan 4-03-12755-A issued by OJSC Main Road.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities to the Company.

CJSC AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

CJSC AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.

CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Regulation 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide cash and settlement services to project and engineering companies implementing investment projects), and the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base and for listing bonds). Pursuant to an order of Russia's Government AK&M Ratings count for the recapitalization of banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

 

CJSC AK&M Rating Agency

ul. Gubkina 3

Moscow, Russia

www.akmrating.ru

Press release by: A.G. Chumachenko

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18

Email: alex-georg@akm.ru

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