LenSpetsSMU places 2 bn RUB bond issue


On 27th May 2010, the next public placing of CJSC SSMO LenSpetsSMU’s bonds was completed. Stock-exchangebonds of БО-02 series totaling 2 bn RUB were offered to investors. The issue rate was fixed at 14.5 % per annum.

CJSC SSMO LenSpetsSMU’s stock-exchange bonds have been placed for a term of three years and no put options are expected to occur. Payment of the coupons is due to be executed in quarterly installments. Redemption of the issue is due to be executed according to amortization redemption scheme. The arrangers of the issue are OJSC Alfa-Bank and OJSC Promsviazbank.

Earlier on 24th May 2010, Standard & Poor’s rating agency confirmed the rating of the issuer on the level “B” (Stable outlook) and also assigned the credit rating ‘B’ / ‘ruA’/ Recovery Rating ‘4’ to the new bond issue. Therefore, the new issue meets all formal requirements of the Russian Federation Central Bank to be included in Lombard list. The previous issue of CJSC SSMO LenSpetsSMU’s bonds, placed on 23.12.2009, was included in this list as of 31.03.2010.

Chairman of the Board of Directors of Etalon-LenSpetsSMU Group, Viacheslav A. Zarenkov, stated: “We are giving a positive evaluation of the results of the placement, especially considering the situation on the financial markets. We have all witnessed how oil prices and indices have been on a downturn since the middle of May, breaking all conceivable and inconceivable levels. The Eurozone is still caught in the throes of a wider global crisis. All this not only forces investors to pull out from the Eurozone, but also freezes any activity on the ruble market. Therefore in the current conditions, the closing of the book at the rate of 14.5 % can be considered a great achievement. In addition to that, given that the previous issue had been placed in December 2009 at a rate of 16% (then it became the first and only placement for the construction sector companies in Russia since the beginning of the global crisis), for the new issue the rate was fixed at 1.5 % lower and this is a breakthrough. It turns out that our company stands alone as the only one construction company in Russia, which managed to enter the public debt market after the beginning of the crisis, while also managing to do it twice.”

Syndicate for LenSpetsSMU’s stock-exchange bonds placement was formed from the following participants:

Arrangers: OJSC Alfa-Bank, OJSC Promsviazbank

Joint arrangers: OJSC Bank Saint Petersburg, Orient Express Bank OJSC, OJSC JSCB Derzhava, OJSC Nomos-Bank, LLC IC Center Capital

Underwriters: OJSC AKIB Obrazovanie, OJSC Tveruniversalbank

Sixty two orders from over 20 investors for bond acquisition were received.

LenSpetsSMU expresses its sincere gratitude to the arrangers of the issue, and also to the members of syndicate and all participants of the primary placement.

Financial department of LenSpetsSMU in collaboration with the arrangers have already started the preparation of the bonds for circulation on the secondary market. The same as in relation to the previous issues, liquidity provision of the issue is one of the foreground tasks after the placing, because a considerable amount of investors has indicated their willingness to acquire LenSpetsSMU’s bonds after the placing.


Public history of Etalon-LenSpetsSMU’s loans started from 2005, when the first bonded loan of CJSC CDR amounting to 1 bn RUB was placed.


Issuer / Borrower



Placing date / Redemption date



Bonded loan series 01

1,000 million rubles

28.04.2005 / 21.02.2008



Bonded loan series 02

1,500 million rubles

26.07.2006 / 20.01.2010



CLN 01

100 million US dollars

26.04.2007 / 20.08.2010



Bonded loan series 01

2,000 million rubles

23.12.2009 / 07.12.2012



Stock-exchange bonds series БО-02

2,000 million rubles

27.05.2010 / 23.05.2013

All in all LenSpetsSMU has successfully entered the public market of debt capital five times and thereby attracted more than 9 bn RUB.


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