LenSpetsSMU plans to place a bonded loan by the end 2009

17.11.2009

On 12 November 2009 FSFR (Federal Service on Financial Markets) registered the bonded loan series 01 of CJSC SSMO LenSpetsSMU, the main operating company in Etalon-LenSpetsSMU Holding. The placing of the loan is planned by the end of 2009. The arrangers are OJSC Alfa-bank and OJSC Promsviazbank.

As the issuer of the new bonded loan, there will be CJSC SSMO LenSpetsSMU, a developer founded in 1987, with accounting carried out under IFRS (International Financial Reporting Standards) since 2003 and Standard & Poor’s rating (‘B’, outlook – stable) since 2006. The fact that the issuer possesses this rating raises the likelihood that the bonded loan will be included in Central Bank’s Lombard list. This will be a considerable advantage in the eyes of investors.

The loan parameters are as follows:

Issuer: CJSC SSMO LenSpetsSMU

Guarantor: CJSC CDR (the issuer of the previous two loans – in 2005 and 2006)

Total value of issue: 2,000,000,000 rubles

Nominal value of a bond: 1,000 rubles

Maturity: 3 years

Coupon period: 90 days

Placing procedure: public offering (book-building)

Placing price: 100% of the nominal value

Redemption plan: amortization redemption (in installments) is possible, its schedule will be determined by the issuer before placing begins.

Listing: quotation list “B” of the MICEX

According to common practice the bond issue is expected to be assigned a national scale rating from Standard & Poor’s in the near future.

The issuing documents are available on the company’s financial site.

NOTE

The issuer of the bonded loan, CJSC SSMO LenSpetsSMU, is currently the highest rated construction company in Russia and Eastern Europe.

According to statements made under IFRS for the 1st half 2009 the net debt of LenSpetsSMU Group of Companies is 4.9bn rubles (14% of the asset value), the ratio of the net debt to EBITDA is only 0.7.

The consolidated debt of LenSpetsSMU Group as of 01.11.2009 decreased to $146mn (as compared to the beginning of the year - $226mn). This is one of the lowest indices, in terms of both absolute and relative figures, among all Russian public construction companies.

The issuer of the previous two bonded loans was CJSC CDR (CJSC Central Department of Real Estate LenSpetsSMU). The 1st bonded loan for the amount of 1bn rubles placed in April 2005 was redeemed in advance by the issuer’s initiative in February 2008. The 2nd bonded loan of 1.5bn rubles placed in July 2006 is to be redeemed on 20 January 2010. Following the put-option in July 2008, in this loan there is 580mn rubles in flotation (39% of the issue). The guarantor of both bonded loans was CJSC SSMO LenSpetsSMU.

CONTACT DETAILS

Mikhail Dukhovny, Director of Corporate Communications Department
Telephone: +7 (812) 348-21-25, e-mail: dukhovny_m@lenspecsmu.ru

Victor Vasenev, Deputy CFO
Telephone: +7 (812) 348-09-95, e-mail: vasenev_v@lenspecsmu.ru