St. Petersburg telecom
Northwestern Federal District of the Russian Federation
For the beginning of 2010 at "St. Petersburg of a telecom" there were only 3.9 billion rubles ($129 million) of assets.
Revenue for 2009 made 5.24 billion rubles ($173 million), net profit — 845 million rubles ($28 million).
The financial debt "St. Petersburg of a telecom" for the end of 2009 according to SPARK-Interfax made only 886 million rubles (about $29.3 million).
On March 30, 2011 it became known that Tele2 Russia Holding AB decided that JSC St. Petersburg telecom under control of it should place seven issues of ten-year bonds with a total amount of 30 billion rubles ($1.06 billion at the rate of the Central Bank for March 30).
The raised funds will go for financing of corporate needs and for further development of Tele2 group, the president of Tele2 Russia Dmitry Strashnov said to Vedomosti. But in Russia this year the company intends to invest three times less — 2 billion Swedish kronur (about $310 million), said in the report of Tele2 for 2010. Usually money for investments in Russia is borrowed in the West, but Tele2 decided to arrive unconventionally — to occupy in Russia on development, including the foreign companies of group, Strashnov says. Russia has the largest potential among Tele2 markets and "we considered that this correct and beautiful solution", he added. He refused any other parts.
In total in Russia Tele2 invested more than $2 billion since 2003 in construction of networks. Now there is an inverse process. Tele2 is going to replace the intra group credits with external loans, tells a source, close to participants of placement of bonds.
With the current indicators for a loan of 30 billion rubles of the company most likely it is necessary to find guarantors, the analyst of Veles Capital Ivan Manayenko considers. And hardly the Swedish shareholder can become the guarantor, he says, but several other companies of holding can be charged. In the Russian market it already happened, but it reduces quality of the borrower in the opinion of creditors, Manayenko warns. The source close to Tele2 confirmed: guarantees will be.
Anyway Tele2 should disclose more information on Russian "subsidiaries" to place bonds with the profitability comparable with papers of the competing companies — VimpelCom and MTS which for investors are more clear. Now similar bond issues of MTS and VimpelCom bargain with profitability about 7% per annum.
However, perhaps, Tele2 already have arrangements with someone from banks and bonds - it are just the form substituting crediting, Manayenko assumes. Then problems with placement at the company will hardly arise.