Significant cost savings of distributive grid companies to pay interest on loans was the result of active operations of the Russian Grids financial unit and its subsidiaries in the second half of 2013. To achieve these goals, negotiations were held with the banks to lower interest rates on the existing loan agreements and the refinancing of loans organized by new loans at a lower cost. In general, the carried out activities will allow Russian Grids subsidiaries to save more than 3.2 billion rubles for the service of borrowed funds.
As a result, the weighted average interest rate on new borrowed funds fell for 10 months in 2013 by 1.43 percent – from 9.57 percent per annum at the beginning of the year to 8.14 percent per annum on November 1, 2013. The weighted average rate on total loan portfolio of Russian Grids Group of Companies (excluding the issues of placed infrastructure bonds of Federal Grid Company) is 8.4 percent per annum.
As the Financial Director of Russian Grids, Yegor Prokhorov, said, “The centralization of power grid complex resulting in the formation of JSC Russian Grids raised the possibility of co-ordination of financial units of network companies. The result of a joint and coordinated work has been a significant increase in the efficiency of the credit portfolio of the management group.”
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