Debt obligations of the Rosseti Group

The Company maintains a moderate level of debt burden. There is no currency risk associated with borrowings, as 100% of debt is denominated in Russian Roubles.

The level of Rosseti Group’s debt did not change significantly in 2023.

The Rosseti Group’s cost of debt for 2023 increased from 9.6% p.a. at the beginning of the year to 12.1% p.a. at the end of the year and is below the market level (according to Bank of Russia’s statistics, the average lending rate for a period of 1 to 3 years in December 2023 was 14.4% p.a.).

The Rosseti Group’s debt portfolio mainly consists of long-term borrowings; the weighted average maturity of the portfolio is more than 7 years.

Financial debt, RUB bln
Servicing costs of loans and borrowings, RUB bln
Debt repayment schedulePrincipal debt on loans and borrowings minus accrued but unpaid interest., RUB bln

PJSC Rosseti is the principal borrower among the Rosseti Group’s companies. PJSC Rosseti’s debt portfolio is evenly distributed between fixed‑rate bond loans and bank loans/bonds with payments linked to a floating indicator.

For 2023, PJSC Rosseti also placed five issues of exchange‑traded bonds with a total nominal amount of RUB 42 billion:

  • 21 February 2023, bonds of 001P‑08R series worthRUB 12 billion, with a coupon rate equal to the key rate of the Bank of Russia +1.3% and a 5‑year term until put date
  • 25 April 2023, bonds of 001P‑09R series worthRUB 5 billion, with a coupon rate of 10.44%, period to maturity of 5 years and 001P‑10R series worthRUB 10 billion, with a coupon rate of 11.15%, period to maturity of 7 years
  • 12 December 2023, bonds of 001P‑11R series worthRUB 10 billion, with a coupon rate defined as the average of the Bank of Russia key rate for the coupon period +1.05%, period to maturity of 6 years and 001P‑12R series worth RUB 5 billion, with a coupon rate of 12.80%, period to maturity of 3.5 years

The weighted average cost of the debt portfolio of PJSC Rosseti as of 31 December 2023 was 9.11% p.a., which is 1.93% p.a. lower than as of 31 December 2022 (11.04% p.a.). The decrease in the weighted average cost of the debt portfolio was caused primarily by the decrease in the level of the consumer price index.