The structure of credit portfolio

Terms of liabilities, RUR thous. 31.12.2011 31.12.2012 31.12.2013 Change
(2013/2012),%
Change
(2013/2012), %
Short-term credits and borrowings 219
Including bonds 219
Debt on interest payable 33 373 60 049 161 117 +101 068 +59.4%
Long-term credits and borrowings  6 030 928 9 071 231 12 231 733 +3 160 502 +34.8%
Including bonds 3 000 000 +3 000 000 +100%
TOTAL 6 064 520 9 131 280 12 392 850 +3 261 570 +35.7%

As of the reported period our credit portfolio increased by RUR 3 160.5 mln. or 34.8% and totaled RUR 12 231.7 mln. as of 31.12.2013. The uplift was due to loans and bond issue raised to finance the Company’s investment program.

The Company’s credit portfolio as of the end of 2013 comprises long-term loans and borrowings under 15 credit contracts with the maturity of 5 years and a bond issue with the maturity of 3 years. The Company has no credit contracts with debt exceeding 5% of the book asset value of the Company.

The level of debt service quality is high. Liabilities under each contract are discharged in time.

Our key banks are Urals Bank of Sberbank of Russia and Ekaterinburg branch of Gazprombank.

In 2013 after credit tenders we concluded 6 contracts worth RUR 4 300 mln. RUR 3 300 mln. were used to finance our investment program and RUR 1 000 mln. to refinance loans. On the whole in 2013 the situation on credit resource market was favorable. Interest rate on previously raised loans was reduced. Newly concluded contracts stipulated interest rate at 8.35-8.36% per annum. In this respect, as of 31.12.2013, average interest rate of the Company’s credit portfolio totaled 8.0% per annum (for information: in 2012 the rate was 8.5% per annum).

In 2013 the Company has placed documentary interest-bearing non-convertible bearer commercial papers series BO-01 with centralized obligatory custody (maturity date – 3 years since the placement, open subscription) and possible early redemption on demand from holders and at the discretion of the issuer. The overall amount of bonds totaled 3 mln. bonds with the nominal value of RUR 1000. Bonds were placed on MICEX on 31.01.2013. 1st coupon rate totaled 8.4% per annum. Coupon payment per each bond is RUR 41.88. Bonds have 6 coupon periods (182 days per each). On 01.08.2013 overall 1st coupon payment totaled RUR 125 640 000. The rate of 2-6th coupon is equal to 1st coupon rate. As of 31.12.2013 BO-01 series commercial papers were in circulation. The key parameters of the bond are shown in the table below.

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Securities Series Identification
number
Pcs Nominal value, RUR Issuing
volume,
RUR
thous.
In
circulation,
RUR
thous.
Coupon rate Placed
on
Redemption date
Commercial papers BO- 01 4В02-01- 32501-D 3 000 000 1 000 3 000 000 3 000 000 8.40% 31.01.2013 28.01.2016
Securities Series Identification
number
Pcs Nominal value, RUR Issuing
volume,
RUR
thous.
In
circulation,
RUR
thous.
Coupon rate Placed
on
Redemption date
Commercial papers BO- 01 4В02-01- 32501-D 3 000 000 1 000 3 000 000 3 000 000 8.40% 31.01.2013 28.01.2016

Besides, the Company prepared commercial papers worth RUR 15 bln. for placement (maturity period – 10 years). Please, study the table below for more details.

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Securities Series Identification number Pcs Nominal value, RUR In circulation, RUR thous. Registration date Maturity period
Commercial papers BО-02 4B02–02–32501–D 3 000 000 1 000 3 000 000 31.05.2013 10 years
BО-03 4B02–03–32501–D 3 000 000 1 000 3 000 000 31.05.201310 years
BО-04 4B02–04–32501–D 4 000 000 1 000 4 000 000 31.05.201310 years
BО-05 4B02–05–32501–D 5 000 000 1 000 5 000 000 31.05.201310 years
Securities Series Identification number Pcs Nominal value, RUR In circulation, RUR thous. Registration date Maturity period
Commercial papers BО-02 4B02–02–32501–D 3 000 000 1 000 3 000 000 31.05.2013 10 years
BО-03 4B02–03–32501–D 3 000 000 1 000 3 000 000 31.05.201310 years
BО-04 4B02–04–32501–D 4 000 000 1 000 4 000 000 31.05.201310 years
BО-05 4B02–05–32501–D 5 000 000 1 000 5 000 000 31.05.201310 years