Yesterday the Italian power company placed bonds on the Borsa Italiana (Italian stock exchange). The nominal value of the bonds is 5,000 euros. Investors can choose between fixed and floating rates. Enel will offer a total of 2 to 3 bln. euros in bonds.
The bonds were placed in order to reimburse debt from buying Spanish giant Endesa and the many purchases made in the Russian energy market. Enel owns 37.15 percent of Russia's wholesale generator OGK-5 and last Thursday launched a public tender offer for the entire share capital of OGK-5. If all shareholders agree to this offer (except for the state, which holds a 26.3 percent stake), Enel’s share will exceed 70 percent, making it the largest foreign player on Russia’s energy market. The total price of the acquisition could reach 2.7 bln. euros. Asked by Expert Online about further plans for the acquisition of stock in Russian energy companies, Enel CEO Fulvio Conti said: “We deal with electricity and the energy sector and would like to maintain the top positions in this business. Our acquisitions — Arcticgaz, Urengoil and OGK-5 shares — are enough to fulfill this ambition.”
In fact, Enel hopes to participate in the sale of Russian gas in Italy. Under an agreement signed a year ago between Gazprom and Eni, the Russian monopolist has the right to sell up to 3 bln cbm of gas directly to Europe. This made Alexander Medvedev, deputy chairman of Gazprom, a very welcome guest in Italy, and he was courted by dozens of companies. With so many suitors at hand, Gazprom can choose the most comfortable partner and does not have to rush to close a final agreement. So far, according to Mr. Medvedev, under the one-year preliminary contract, Gazprom is supplying 1.7 bln cbm of gas to a consortium of Italian utilities services enterprises in Milan, Brescia and Bologna (AEM, ASM and Hera, respectively), while simultaneously continuing talks with other companies.
In addition, the Russian gas giant is considering buying power generation units in Italy. "The Italian power market is one of the most interesting in Europe. For this reason Gazprom, which can supply gas to Italy, is considering participation in power generation projects,” Mr. Medvedev said last week. In this area Enel, Italy's largest power generating company, probably has something to offer.
Meanwhile, Gazprom is strengthening its position in Austria. In December the company will sign an agreement to purchase from Austrian oil & gas company OMV Aktiengesellschaft a stake in gas distribution company Baumgarten, which should become the largest in Europe.
Evgeny Utkin
Photo: Reuters
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