Cherkizovo group announces 3 billion rouble bond issue

November 13, 2010

OJSCCherkizovoGroup (LSE: CHE), oneofRussia'sleadingintegratedanddiversifiedmeatproducers, announces the placement of a 3 billion rouble bond issue, series БО-03.

On the 12th of November Cherkizovo Group successfully placed stock bond series БО-03 with a nominal value of 3 billion roubles.  

Bonds were placed on MICEX through open subscription, using a tender process to establish the rate of the first coupon. The rate of the first bond coupon was established at 8.25%; subsequent coupon rates will be equal to the rate of the first coupon. The effective 3 year bond yield is 8.42% per annum.

OJSC Bank Zenit acted as coordinator, underwriter and payment agent. The identification number of the issue is 4B02-03-10797-A dated 30.12.2009.

It is expected that the proceeds from the placement will be directed at repayment of short term loans, current investments and other investment needs.

Commenting on the issue, Sergey Mikhailov, CEO of Cherkizovo Group, said:

“We are pleased to have successfully placed this bond issue despite of today’s challenging market environment and at an attractive cost in the middle of the pricing range. The placement enables the Group to further optimize its balance sheet structure, while also supporting investment in its strategic growth initiatives.”