LenSpetsSMU to place stock-exchange bonds for May 2010

13.04.2010

On 12 April CJSC SSMO LenSpetsSMU registered a set of stock-exchange bonds (BО-01 series for 3 bn rub and BО-02 series for 2 bn rub). The placement of the BО-02 series loan is planned for May 2010. The arrangers of the issue are OJSC Alfa-bank and OJSC Promsviazbank.

The issues of the BО-01 and BО-02 series stock-exchange bonds have been assigned the identification No. 4B02–01-17644-J of 12.04.2010 and 4B02–02-17644-J of 12.04.2010 respectively.

The funds from the bonded loan are to be partly used for the refinancing of a short-term debt (approximately 50 mn USD) and also for the acquisition of new land plots.

The loan parameters are as follows:

Form of issue: stock-exchange bonds

Issuer: CJSC SSMO LenSpetsSMU

Amount 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 (bookbuilding)

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.

Flotation: MICEX (Moscow Interbank Currency Exchange) Stock Exchange

According to standard practice, the bond issue is expected to be assigned Standard & Poor’s rating in the near future.

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

REFERENCE:

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 is 4.9 bn rubles (14% of the asset value), the ratio of the net debt to EBITDA is 0.7.

The consolidated debt of LenSpetsSMU Group as of 14.04.2009 decreased to $169 mn (as compared to the beginning of the year - $213 mn). This is one of the lowest indices, in terms of both absolute and relative figures, of all Russian public construction companies. The company’s net debt as of 14.04.2010 is $136 mn.

The issuer of two of the previous three bonded loans was CJSC Central Department of LenSpetsSMU Real Estate (CJSC CDR). The 1st bonded loan for the amount of 1 bn rubles placed in April 2005 was redeemed in advance on the initiative of the issuer in February 2008. The 2nd bonded loan of 02 series for 1.5 bn rubles placed in July 2006 was redeemed on 20 January 2010.

The issuer of the third bonded loan for 2 bn rubles, placed on 23 January 2009, was CJSC SSMO LenSpetsSMU. This placement was the only one for companies in the construction business in 2009. Under the Resolution of the Board of Directors of the Bank of Russia (minutes of the Bank of Russia Board Meeting No.4 dated 12.03.2010) CJSC SSMO LenSpetsSMU’s 01 series bonds (issue registration No. 4-01-17644-J) were included in the Bank of Russia Lombard List. The resolution came into effect from its issuance in the Bank of Russia Bulletin (No.18 (1187) dated 31.03.2010).

CONTACT DETAILS:

Natalia Menzel, Head of Public Relations

tel. (812) 348-21-25, e-mail: menzel_n@lenspecsmu.ru

Viktor Vasenev, Deputy CFO

tel. (812) 348-09-95, e-mail: vasenev_v@lenspecsmu.ru