City of Severodonetsk Starts Placement of UAH 20 Million Municipal Bonds
ARTA Investment Partners acted as a lead manager in issuing and placing 20,000 five-year municipal bonds for Severodonetsk City Council totalling UAH 20 million with a 14.0% bond yield per annum and interest payable on a monthly basis. No put options will be available. The maturity date of the bonds is June 18, 2013.
On May 20, 2008, the national credit rating agency - Credit Rating – assigned uaBBB+/Stable Outlook to Severodonetsk. Debt obligations rated uaBBB+/Stable Outlook are less exposed to the risk of insolvency.
Severodonetsk intends to invest the bond yields into providing its municipal company Severodonetskteplokommunenergo with cogeneration facilities in order to considerably cut down fuel consumption and power costs. This project is aimed at improving the power supply throughout the city and providing stable power supplies both in terms of regular supply at constant voltage and heat supply temperature.
NOTE:
Severodonetsk is a regional but major industrial, cultural and research centre in Lugansk region. The City Council is the governing body which represents the residents and various communities of the city. The present Severodonetsk City Council was elected in 2006 and represents 5 different political parties.
The total 2008 City Budget amounts to UAH 203,753,536.5 including the general budget of UAH 190,543,225.00, and the special-purpose budget of UAH 13,210,311.53. The development budget is approved at UAH 4,440,000.00.
ARTA Investment Group includes ARTA Investment Partners Ltd., ARTA Securities Ltd., and ARTA Assets Management Ltd. Since 2002, ARTA provides a full range of investment banking services including brokerage, corporate finance and asset management. ARTA has attracted approx USD 1.5 billion of investments to the local market.