Novorossijsk Commercial Seaport to issue Eurobonds to a total amount of $200-400 million
Novorossijsk Commercial Seaport may issue Eurobonds in 2007 to a total amount of $200-400 million, Alexander Rybin, head of NCS’s corporate finance board reports according to yuga.ru referring to Interfax-Yug agency. Allocation is scheduled for 2007-2008, most probably the coming year, Rybin said. The bonds are to be allocated by Morgan Stanley bank according to Reg S. The company plans to be rated by two or three leading rating agencies and to transfer from US GAAP accounting system to IFRS within half a year. The company also intends to introduce corporate management code. The company’s board of directors includes one independent director now.
Rybin does not exclude future listing of the company on Russian or foreign stock exchange, however no decision has been taken about this yet.
According to Rybin, the company needs about $700 million dollars of investments in the coming years. About 30% of necessary amount are to be invested by NCS and 70% - attracted funds. The funds are needed for quite a long period – about 5-7 with a considerably low annual interest rate – about 7-8%. Thus, the company may attract funds from bank credits or Eurobonds. According to Rybin, Sberbank has provided NCS with a credit line for $550 million. At the same time the company is not going to hold IPO in the nearest future, Rybin says.
