Capital markets

Share capital

As at 31 December 2019, the Company’s charter capital amounted to RUB 2,951,250,000.

It is divided into 2,951,250,000 common registered uncertificated shares with a face value of RUB 1 per share.

All common shares have the same face value, are registered uncertificated securities and provide equal rights to their holder (shareholder).

In accordance with the Articles of Association, the Company is entitled to place 737,812,500 common shares with a face value of RUB 1 each in addition to the outstanding shares.

As at 31 December 2019, FESCO’s key indirect shareholders were Mr Ziyavudin Magomedov (32.5%), TPG Group (17.4%) and GHP Group (23.8%).

Share price performance (MOEX)

FESCO shares are traded on the Moscow Exchange and included in the Level 3 quotation list (ticker: FESH). In 2019, FESCO share price surged by 84.3% from RUB 4.78 as at 3 January 2019 to RUB 8.81 as at 30 December 2019. FESCO’s market capitalisation increased from RUB 14.10 billion (USD 203.06 million) at the beginning of the year to RUB 26.00 billion (USD 419.15 million) at the year-end.

Exchange-traded bonds

On 12 July 2019, the Group made an irrevocable public tender offer to repurchase BO-01 and BO-02 series bonds issued in 2015 and 2013, respectively BO-01 series interest-bearing documentary non-convertible exchange-traded bonds payable to bearer subject to centralised deposit, identification number: 4B02-01-00032-A dated 5 May 2010, BО-02 series, identification number: 4B02-02-00032-A dated 5 May 2010.. The offer resulted in a buy-back of 6,658 bonds of BO-01 series from 22 investors and 29,942 bonds of BО-02 series from 112 investors. At present, 3,758 BO-01 series and 34,424 BO-02 series bonds that are not challenged in court proceedings remain outstanding for a total of up to RUB 38 million, or 0.54% of the initial issue volume. The Group completed settlements with creditors under the public offer. The Company is ready to repurchase the remaining outstanding bonds from investors under the terms of the public offer, i.e. for the sum of face value and outstanding coupon payments.

Credit ratings

As at the end of 2019, the Company maintained an RD rating from Fitch Ratings Limited.

In June 2020, Fitch revised FESCO’s credit rating upwards by four notches, from RD to CCC.

Payout of the declared (accrued) dividends

Pursuant to the Company’s Articles of Association, resolutions on the payout of dividends are made by the General Shareholders Meeting following a recommendation of the Board of Directors. The General Shareholders Meeting makes a resolution based on the Company’s current financial position, taking into account its development plans. In 2019, no dividends were accrued or paid.