Meeting of the Board of Directors of OJSC Irkutskenergo is held on March 14, 2013 in Moscow
On March 14, 2013, the meeting of the Board of Directors of OJSC Irkutskenergo was held in Moscow. At the meeting, issues related to the Company’s business were considered. The Board members approved a number of non-arm's length transactions, including a guarantee agreement between OJSC Irkutskenergo and Gazprombank (OJSC) as part of the housing construction project in the Irkutsk Region.
In the first half of 2013, LLC Irkutsk Utility Systems (a subsidiary of OJSC Irkutskenergo) will start actively implementing the projects on constructing engineering infrastructure at the sites where CJSC SibirEnergoTrade (a subsidiary of OJSC Irkutskenergo) is constructing low-rise housing. In 2014-2021 LLC Irkutsk Utility Systems intends to construct and subsequently operate water supply and sewerage systems in the new villages. LLC Irkutsk Utility Systems will borrow funds to finance these projects. Gazprombank was chosen for this purpose, as it can promptly open a line of credit with the credit limit of RUB 1.225 bln and the interest rate of 11% per annum; the tenor is 5 years. To ensure that LLC Irkutsk Utility Systems fulfills its obligations to Gazprombank (OJSC), OJSC Irkutskenergo and Gazprombank (OJSC) are to conclude a guarantee agreement; under the agreement, OJSC Irkutskenergo shall act as a guarantor. The agreement shall come into force after being signed and shall be valid until March 16, 2021.
We would like to remind that CJSC SibirEnergoTrade, a subsidiary of OJSC Irkutskenergo, is implementing a large-scale investment and housing construction project at four sites in the Irkutsk Region near the villages of Pivovarikha, Novolisikha, Patrony and Burdakovka. In December 2011, the company gained the right to lease these sites by winning the competition held by the Russian Housing Development Foundation (RHD). At these sites, the company plans to build 430 thousand square meters of low-rise residential housing. This project will enable to provide housing for up to 14,500 people. About 50% of constructed housing will be sold at preferential prices based on the price of one square meter set by the Ministry of Regional Development of Russia. It is planned to construct social facilities at all sites (14 nursery schools, four schools and a district hospital). Investments in construction, transport and engineering infrastructure will total about RUB 17 bln.
Evgeny Fedorov, CEO of OJSC Irkutskenergo: “Our company considers the construction of affordable and convenient housing not only as an efficient way to promote the development of regional infrastructure and utilities, but also as a global social project. This is also a new and more advanced level of business diversification, for which the Company has the necessary investment potential.”
Press service of OJSC Irkutskenergo
March 15, 2013