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Acron's Second Bond Issue 2.2 Times Oversubscribed

On September 24, 2009 Acron completed the offering of its second bond issue on the Russian MICEX. Based on the bids received, the Group set the first coupon rate at 14.05% p.a, making the bond yield at the date of its put option 14.54% p.a.

A total of 193 bids worth over RUB 7.7 billion were received. The rates on the bids varied between 13% and 16.50% p.a. The issue therefore has been fully subscribed.

The issue arranger is Raiffeisenbank, with leading co-arranger Sberbank of Russia, co-arrangers MKB Bank, Promsvyazbank and UniCredit Bank. The underwriters are VBRR and Bank Zenit.

Offered at par, the two-year bonds were placed by Acron for a total of RUB 3.5 billion. The coupon is to be paid semi-annually at a rate of 14.05% p.a. for the first four coupons; further coupon rates will be set by the issuer at a later date. The issue has a two-year put option exercisable at par value.

The Group will use the proceeds from the bond offering for debt restructuring and working capital financing.

Oscar Valters, Acron’s vice-president for finance, commented: “The well-timed offering and professionalism of the issue arranger underpinned investors’ interest. The bond issue will allow us to optimise our debt portfolio as we increase the share of rouble-denominated debt and reduce our foreign exchange exposure. In addition, a certain portion of the proceeds will be used to repay our short-term bank loans, which will remarkably strengthen the liability side of Acron’s balance sheet.”

Oleg Gordienko, Raiffeisenbank deputy head for corporate financing and investment banking: “Acron’s successful offering is a good sign for the market in general and is still further proof of the Group’s solid credit profile.”