Bonds
Joint Stock Company INK-Capital made its placement of its exchange-traded bonds on PJSC Moscow Exchange on the terms listed below:
- category, class (type) and other identification details of securities: exchange-traded non-convertible interest-bearing uncertified with centralized accounting of rights, placed under the exchange-traded bonds program (hereinafter referred to as the Program);;
- total (maximum) sum of the nominal values of all issues of exchange-traded bonds placed under the Program: up to 100,000,000,000 (One hundred billion) Russian rubles inclusive or the equivalent of this amount in a foreign currency, calculated at the rate of the Bank of Russia as of the date of signing by the authorized official of JSC INK-Capital of the respective resolution on the issue of securities.
The maximum term to maturity of exchange-traded bonds placed under the Program is 3,640 (Three thousand six hundred and forty) days from the start date of placement of each respective issue of exchange-traded bonds under the Program.
The term to maturity of exchange-traded bonds placed under the Program is determined separately for each issue of exchange-traded bonds placed under the Program in the respective resolution on the issue of securities, establishing a set of property and non-property rights in relation to a specific issue of exchange-traded bonds under the Program.
The debut issue of bonds worth 5,000,000,000 (Five billion) rubles, placed under the Program, registered by PJSC Moscow Exchange on November 3, 2021, is the first issue of transition bonds in the Russian Federation in accordance with the RF Government Resolution No. 1587 dated September 21, 2021, and the principles of transition bonds described in the Climate Transition Finance Handbook of the International Capital Markets Association (ICMA), which is confirmed by an independent written opinion of JSC Rating Agency Expert RA on a yearly basis (see below).
To encourage an overall development of the Sustainable Development Sector, the Moscow Exchange made amendments to its Listing Rules with effect from December 28, 2021: the National Projects Segment, where the bonds were initially placed, was renamed into the National and Adaptation (Transition) Projects Segment. This Segment now includes bonds raising funds for projects that correspond to the taxonomy of adaptation (transition) projects introduced by the RF Government Resolution No. 1587 dated September 21, 2021.
On December 30, 2021, the Moscow Exchange included the issue of JSC INK-Capital's transition bonds in the National and Adaptation (Transition) Projects Segment of the Sustainable Development Sector. Thus, the first transition bonds in the history of the Russian stock market were also the first ones to be included in the corresponding segment of the Moscow Exchange. On February 11, 2022, the Company's bonds were included in the ICMA Green Bonds Category. JSC INK-Capital and its bonds have the ratings assigned by rating agencies that are required for the bonds to become and keep listed in the second quotation level of the Moscow Exchange.
Purpose of the Bonds Issue
The purpose of the issue is a partial refinancing of the costs incurred in 2019-2021 for the cycling process project (re-injection of associated petroleum gas into the reservoir) in the Yaraktinsky field (hereinafter referred to as the Project) implemented by the main operating entity of the Group – LLC INK (hereinafter referred to as INK).
Broken down by stages, implementation of the Project started in 2009 with support of JSC INK-Capital shareholders. The Project’s implementation resulted in a reduction of gas flaring and, consequently, a reduction of emissions, including emissions of pollutants. As is known, oil production leads to extraction of associated petroleum gas, which is commonly burned in flares, if no other utilization methods are available. In 2009, the Company was granted a targeted loan of 90 million euros for the Project’s implementation, and the Project became the first of its kind implemented in Russia’s oil and gas sector on an industrial scale.
In 2012, the investment project of INK “Utilization of associated petroleum gas in the Yaraktinsky field, Irkutsk Region, Russia” was approved by Order of the Ministry of Economic Development of Russia No. 277 dated May 16, 2012 as joint implementation project No. 10 (in total, 12 such projects were approved), which meant the potential use of emissions quotas under the Kyoto Protocol.
The environmental effect of the Project’s is verified by an independent environmental consultancy (LLC Environ Consult CIS) on a yearly basis. Considering its statement, the verifier of the bonds (rating agency JSC Expert RA) issues a yearly written second-party opinion of the bonds compliance with the principles of transition bonds and criteria of adaptation financial instruments.
In addition, JSC INK-Capital publishes yearly disclosures (reports) on the targeted use of the funds raised with the bonds and on the project implementation status in compliance with the legal requirements of the Russian Federation.
Background: In May 2012, INK was awarded the EBRD Sustainable Development Achievement Award and was the winner in the category for Outstanding Environmental and Social Achievements. At the awarding ceremony, the independent jury especially commended the Company's work on associated petroleum gas re-injection back into the reservoir in the Yaraktinsky field.
In October 2012, successful implementation of the Project was noted at the Global Gas Flaring Reduction Forum, organized by the World Bank and held in London.
For more information, please see:
- website of the Moscow Exchange;
- website of VEB.RF;
- website of the International Capital Market Association (ICMA);
-
subsection “Information regarding the assignment of the transition bond status” below
Exchange-traded bonds program
Terms of placement of exchange-traded bonds
Resolutions on the issue of exchange-traded bonds
Information regarding the assignment of the transition bond status
Transition bonds concept (Framework)
.pdf 2.58 МБ
Environ Consult CIS conclusion for 2021
.pdf 896.76 КБ
The Sustainable Development and ESG Policy of JSC INK-Capital
.pdf 558.45 КБ
Expert's conclusion on transition bonds, 2021
.pdf 137.56 КБ
Environ Consult CIS conclusion for 2022
.pdf 544.64 КБ
Expert's conclusion on transition bonds, 2022
.pdf 140.7 КБ
Expert’s conclusion on transition bonds, 2023
.pdf 145.82 КБ
Environ Consult CIS conclusion for 2023
.pdf 2.05 МБ
