GEN-I successfuly entered Slovene capital market and opened liberalized electricity market in Serbia

THE INTEREST OF INVESTORS IN GEN-I EXCEEDS EXPECTATIONS

With help from NLB, the GEN-I Company entered the Slovene capital market and with its first issue of 360-day commercial papers of the GEN-I Company succeeded in acquiring adequate financial assets from institutionalized investors which are not banks. Therefore, GEN-I is the first Slovene company which, by definition, does not belong among public limited companies which are listed on the Ljubljana Stock Exchange and which has succeeded with this type of financing for its business operation. GEN-I is the third company in Slovenia to issue commercial papers.

We estimate that the issue of commercial papers was extremely successful since the GEN-I Company succeeded in acquiring the planned EUR 30 million on the capital market.  We are even more pleased that investors' interest largely exceeded our planned volume of issued commercial papers and the need for company financing.

Once again GEN-I showed that it is a financially stable company which is held in great confidence not only by end-users and partners on the electricity and natural gas markets but is also trusted by the Slovene financial public and Slovene institutionalized investors.

The successful issue contributed to an even better liquidity position for GEN-I and, at the same time, provided requisite liquidity reserves, thus strengthening the financial power of the Company. In this way, GEN-I further stabilizes the actualization of its conservative, though correct, risk management strategy.

The most important characteristics of issuing commercial papers of the GEN-I Company are:

       
  • Commercial paper maturity date: 10 February 2014
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  • Annual interest rate:  4.30%.
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  • Number of investors: 22. Even though the issue was not marketed abroad, a share of foreign capital is also present.
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  • The commercial papers will also be listed on the Ljubljana Stock Exchange.

 

GEN-I IS OPENING A LIBERALIZED ELECTRICITY MARKET IN SERBIA

GEN-I is expanding its commitment to provide the most favourable electricity supply outside Slovenia, thus strengthening its visibility in the region. In the past number of days, the Company has signed a contract on electricity supply with a Serbian company Messer Tehnogas AD and begun with its first supplies, which started on 8 February 2013.

Messer Tehnogas AD is a part of the German group Messer Griesheim, the biggest producer of industrial and medical gases in the world and is, at the same time, one of the biggest buyers, connected to the high-voltage grid in Serbia. The company’s consumption represents approximately 5% of total consumers' electricity consumption which are connected to the high-voltage grid in Serbia. The contract between GEN-I and Messer Tehnogas is concluded until the end of 2013.

Messer's existing electricity provider, Elektroprivreda Srbije, estimates, despite its loss of a big electricity consumer, that the company’s decision to choose a new and cheaper supplier is proof that the market in Serbia works independently and freely.

This is the first case of a change of electricity supplier on the liberalized Serbian electricity market, making GEN-Ithe only newcomer to supply end-users in Serbia.

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