PJSC TGK-1, PJSC OGK-2 and PJSC Mosenergo joined the centralized liquidity management system of Gazprom Group

December 23, 2019 10:30

Boards of directors of PJSC TGK-1, PJSC OGK-2 and PJSC Mosenergo made a decision for the companies to join the centralized liquidity management system of Gazprom Group (cash pooling). The leader of the cash-pool system is PJSC Gazprom.

On December 13, 2019, PJSC Gazprom (the Borrower) concluded a loan agreement with PJSC TGK-1 (the Lender), on December 19 — with PJSC OGC-2 and PJSC Mosenergo (the Lenders). The model of the cash-pool system also contemplates conclusion of loan agreements where PJSC TGK-1, PJSC OGK-2 and PJSC Mosenergo act as the Borrower, and PJSC Gazprom — as the Lender.

Cash-pooling system is a universal finance management system in large holding companies. Its implementation provides an additional financial support instrument for PJSC TGK-1, PJSC OGK-2 and PJSC Mosenergo, it shall ensure the raise of liquidity management efficiency at the companies and increase of interest income for granting available cash assets.

Background

PJSC TGК-1 (a part of Gazprom Energoholding Group) is a leading producer and supplier of power and heat energy in the Northwest region of Russia. PJSC TGK-1 consolidates 53 power plants in four regions of the Russian Federation — St. Petersburg, Republic of Karelia, the Leningrad and Murmansk regions.

The installed electric capacity of PJSC TGK-1 is 6.95 GW, and installed thermal capacity is 13.75 thousand Gcal/h. The main shareholders are Gazprom Energoholding LLC (51.79 %) and Fortum Power and Heat Oy (29,45 %).

PJSC OGK-2 is a heat generation company comprising 12 operating power plants: Surgut State Regional Power Plant-1, Ryazan State Regional Power Plant, Kirishi State Regional Power Plant, Stavropol State Regional Power Plant, Novocherkassk State Regional Power Plant, Troitsk State Regional Power Plant, Krasnoyarsk State Regional Power Plant-2, Cherepovets State Regional Power Plant, Serov State Regional Power Plant, Pskov State Regional Power Plant, Adler TPP and Grozny TPP. The controlling shareholder of the company is Gazprom Energoholding LLC (a wholly owned subsidiary of PJSC Gazprom).

PJSC Mosenergo is territorially the largest power generation company in Russia. The installed electric capacity of power plants of PJSC Mosenergo is 12.8 thousand МW, and the installed thermal capacity — 43.2 thousand Gcal. The Company power plants deliver over 60% of power consumed in the Moscow region, and meet about 90 % of demand of Moscow (without the attached territories) in heat.

PJSC Gazprom carries out consistent work on development of the centralized cash flow and liquidity management system of Gazprom Group. As of the end of 2018, the physical cash pools system of the Group counted 322 participants.

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