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Acron placed Third Bond Issue of RUB 3.5 Billion at MICEX

Acron placed third bond issue at MICEX on November 25, 2009. Based on the tender results, the issuer set the first coupon rate at 13.85% per annum, making the bond yield over two and a half years 14.33% per annum.

Bids for a total amount of RUB 5.3 billion were made during the offering. Bidders indicated interest rates between 12.5% and 14.15% per annum. The entire issue was placed within one day at the auction.

The arranger of the offering is Raiffeisenbank, with Sberbank and Sviazbank as leading co-arrangers.

The bonds with a total par value of RUB 3.5 billion have a four-year maturity term and will pay coupons semi-annually. The interest rate for coupons 1-5 is 13.85% per annum, with the rate for following coupons to be established by the issuer at a later date. The issuer included a 2.5 year put option at par.

Fitch Ratings assigned a priority unsecured rating of B+ to Acron’s RUB 7 billion bond issue programme (second and third issues).

The proceeds of the bond issue will be used by the company to refinance the loan portfolio and finance its working capital.