Public JSC "Territorial Generating Company #2" (TGC-2) untill Agust 18, 2007 is to determine the bank which will become the arranger for a RUB4 billion bond issue placement. The bond maturity period will be 3 years with a coupon rate of not more than 8,5% per annum and a coupon period not exceeding 6 months. The placement is planned for the 4th quarter of 2007 at a nominal price of RUB1000 per bond.

Bond issue placement was approved by the TGC-2 Board of Directors in June of the current year. The core objective of the placement is to provide financial support to the Company Investment Program and optimize the TGC-2 credit portfolio.

The Company team believes that for a successful implementation of these objectives it is vital to receive qualified arrangement and placement services for a bond issue on the Russian market. Therefore, it is planned to choose on competitive basis a professional entity which already has a similar bond issue placement experience.

In the beginning of July TGC-2 commenced financing of its Investment Program by issuing a RUB1,5 billion bill debt. "Gazenergoprombank" became the arranger of this placement.

The amount of TGC-2 Investment Program untill 2011 is estimated to be RUB38,5 billion. By this time the Company intends to put in operation 1145 MW of generating capacity and achieve a two fold increase in its capitalization by means of the Development Strategy and the investment projects. The main financial sources for the TGC-2 Investment Program will be raised funds (20%), internal funds (21%), project financing (36%) and additional share issue (23%).

Company Profile.
JSC "Territorial Generating Company # 2" (JSC "TGC-2") was established in February, 2005. The Company"s Director General is Andrey Vagner. TGC-2 comprises generating capacity of 6 regions - Arkhangelsk, Vologda, Kostroma, Novgorod, Tver and Yaroslavl.

Since July 1st 2006 TGC-2 functions as a unified Company. TGC-2 operates 16 heat power stations, 8 boiler-houses, 4 enterprises of thermal networks. The aggregate electric capacity of TGC-2 enterprises is 2 582,5 MW, the installed thermal capacity constitutes 12 471 Gcal/h.

The Authorized Capital of JSC "TGC-2" amounts to RUB7 117 127 045 and is spread over 700 328 533 458 ordinary shares and 11 384 171 043 preferred shares with the face value of 1 kopec. The main shareholder of the Company is RAO "UES of Russia" which owns 49,18% of shares.