Transneft might again enter the loan market to attract financial resources

​To attract additional funds Transneft might approve a program of exchange bonds on March 14th 2016.

The agenda also comprises the issue of the approval of securities prospectus – exchange bonds offered in the framework of the program of exchange bonds.

The lack of funds to complete some projects has its reason.

On October 16th 2015 FAS announced of the tariff rise for Transneft’s services by 6.12% in 2016.

Transneft counted that for a normal functioning of the company a 10.7% growth is needed, e.g. by twice higher than was suggested by FAS.

On October 28th 2015 Transneft announced of the lack of funds for the expansion of the ESPO.

On October 29th 2015 Transneft said that it keeps the volume of the long-term investment program until 2020 (2.167 trln roubles) but the period of realization of some projects would be delayed.

In late December 2015 Transneft corrected the investment program -2016 having reduced it by 11% to 339.534 bln roubles.