Today, on 24 March 2011, OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) fully placed interest-bearing non-convertible rouble bond. The total size of the issue was RUB 2 billion. The bonds were placed through public subscription. The duration period is 3 years, the put option is not to be executed. The rate for the duration period was set at RUB 9.5%
Issuer: OJSC LSR Group
Identification number: 4Â02-03-55234-Å as of 16 February 2011.
Principal amount: 2,000,000
Denominations: RUB 1,000
First coupon yield: RUB 47.37 per bond
Duration: 1092 days from the placement date
Stock Exchange: MICEX
Lead managers: Uralsib Capital and Sberbank of Russia
Elena Tumanova, CFO of LSR Group, commented:
«New placement corresponds to our strategy to attract long-term financing and reduce our debt costs. All proceeds from the placement will be used for our business expansion and development».
Boris Ginzburg, Executive Director, Head of Fixed Income at URALSIB Capital, commented:
“This placement of LSR Group’s bonds attracted many investors – more than thirty accounts were involved in the placement – this ensured the most favorable conditions for the issuer. The fact that the placement took place without a premium to the secondary market, tells that the investors positively perceive LSR Group’s business, and also supported by LSR Group’s impeccable reputation on the debt market.
Yesterday Fitch Ratings agency assigned this bond issue an expected “B(exp)” rating and also upgraded long-term foreign currency Issuer Default Rating (IDR) of OJSC LSR Group from “B-“ to “B”, Stable outlook.