LSR Group fully repays its first bond loan

LSR Group (“LSR” or the “Group”) one of the leading real estate developers and building materials producers in St Petersburg and the Leningrad region (LSE: LSRG, MICEX, RTS: LSRG), announced today that has fully repaid its first of three bond loans.

The first issue of bonds worth 1 billion roubles was placed in March 2005, managed by FC Uralsib and VTB North-West. The interest rate was originally established at 14% and subsequently dropped to 10% two years later. The yield paid on all of the six coupons of the bonds issued has totaled 302,354,465.98 roubles.

LSR Group also placed a second 2 billion roubles loan in December 2006 with one of the lowest rates for the bond market of Russian construction companies at the time of placement – 10.7%. Currently, LSR Group has paid a total of 213.4 million roubles as the yield on the first two coupons of Series 01 bonds.

In July 2007, LSR Group placed a third bond loan for the amount of 3 billion roubles setting a record-beating low rate for the construction and property development sector (8.35% in roubles), compared to 9% for construction companies. On January 17, 2008 LSR Group paid the yield on the first coupon of Series 02 bonds in the amount of 124.92 million roubles.

Both above-mentioned loans have been placed by OOO LSR-Invest, a 100% subsidiary of LSR Group founded specifically to raise funds for LSR Group companies.

Notes to Editors:

OJSC LSR Group is a diversified construction company founded in 1993 and operating in a number of complementary market segments. Its core business areas are building materials, construction and real estate development. The Group includes enterprises for extraction and processing of aggregates,  production and transportation of building materials, and housing construction – from mass market large-panel housing to elite property built after designs made by leading domestic and foreign architects. 

LSR Group has operations and offices in a number of cities in the Leningrad Oblast, in St. Petersburg, Moscow, Yekaterinburg, Lithuania, Latvia, Estonia, Ukraine and Germany. LSR Group employs over 15,000 people. In 2005 and 2006 the revenues of LSR Group (according to IFRS statements) were RUB 13,085.5 million and RUB 21,110.8 million respectively. For the six months of 2007, the Group’s revenues amounted to RUB 16,062.0 million compared to RUB 9,336.4 million for the same period last year. In July 2007, Moody’s Investors Service assigned a B1 rating to LSR Group; outlook – stable. In November 2007, OJSC LSR Group implemented an IPO. In December 2007, LSR Group was bestowed a National Award in the field of business as ‘The Company of the Year’ in the ‘Construction’ category.

For more details please contact:

Press Service, LSR Group
+7 (812) 314-1044
press@lsrgroup.ru
www.lsrgroup.ru