OJSC Far Eastern Shipping Company (Fesco) is one of the main owners and operators of seaport infrastructure within Russia. In 2012, Fesco experienced a net loss of USD17 million for the period of January-to-September, while in 2013, the company’s net profit in the corresponding period was USD28 million. Sales revenue for Fesco during the reporting period decreased 4.7 percent, amounting to USD850 million. Profits before taxes were calculated at USD49 million, a figure that indicated a significant increase in profits compared to the results for the same period of the previous year.

Fesco owns and runs an integrated railroad and logistics operations geared to shipping containers. The Fesco group operates its own shipping terminal at Vladivostok as well. The Vladivostok port can process 3.9 million tons of general cargo and petroleum products, 150,000 vehicles and machines with wheels, as well as more than 600,000 twenty-foot equivalent containers every year. The railroad operator Transgarant and CJSC Russkaya Troyka also belong to Fesco, the latter in part.

The Far Eastern Shipping Company also leases nearly 36,000 containers, as well as a fleet of 26 ships and four icebreakers.

Fesco said in a financial report for January-to-September that from April to May 2013, it issued Eurobonds denominated in U.S. dollars for a total amount of USD875 million. The group provided USD824 million from Eurobonds proceeds to the company’s new shareholder in order to refinance bank facilities obtained by the group’s new shareholder in the course of its acquisition of the company’s stock.

The capital raised from the Eurobond issuance will be utilized to repay the loans obtained from ING, Goldman Sachs, and Raiffeisen in 2012 for the purchase of a 73.74-percent stake in the company from Sergei Generalov. The remaining portion of the funds raised will be directed to pay off a USD145 million loan of Transgarant, now part of Fesco and to refinance USD250 million of Fesco’s debts.

Fesco is owned by the Summa Group, which holds a 32.5-percent stake in the logistics operator, the GHP Group, with 23.8 percent, TPG, with 17.4 percent, and other shareholders, who cumulatively have a 26.3-percent stake in the company.

Fesco recently acquired 4,525 shares and 571,524 Global Depository Receipts (GDR) of TransContainer. As of this time, 24.1 percent of TransContainer belongs to Fesco. The stake’s price tag for Fesco was USD8.8 million.