LSR Group places bonds worth RUB 2 bn

LSR Group (LSE: LSRG; MICEX, RTS: LSRG) announces the results of the Series BO-05 bond placement worth RUB 2 bn. Identification number of the issue is 4B02-05-55234-E as of 16 February 2011. The principal amount of the bonds placed was 2,000,000 with a nominal value of RUB 1,000 each.

The first coupon rate was determined today as a result of the tender. The total size of the bond issue was RUB 2 billion. The duration period is 3 years (1092 days) from the placement date. The put option is not to be executed. The bond issue is included into the Qotation list A1 of MICEX.

In the course of the tender investors submitted 54 bids with the first coupon rate ranging from 8.20% to 8.57%. Overall demand amounted to RUB 3.1 bn. Thus, the issue was 1.5 times oversubscribed. The rate for the duration period was set at 8.47% with the earlier announced rate range of 8.5%-8.75%. The interest rate of the second, third, fourth, fifth and sixth coupons are equal to the first coupon rate. The total number of bids satisfied is 20 (one bid was partially satisfied).

The bond placement is a part of LSR Group strategy aimed at attracting long term financing, in particular for the company's investment projects.

The lead manager and underwriter of the placement was Uralsib Capital.

Note to Editors:

OJSC LSR Group is a real estate development and building materials company founded in 1993 and operating in a number of complementary market segments. Its core business areas are production of building materials, real estate development and panel construction.
LSR Group's main operations are located in St. Petersburg, Moscow, Yekaterinburg and Ukraine.
In 2010, the sales revenues of LSR Group were RUB 49,950 million (IFRS).
LSR Group is a public company, with its GDRs traded on the London Stock Exchange and its ordinary shares traded on MICEX and RTS.

For more details please contact:
LSR Group Press Service
Tel.: +7 812 314 10 44
Fax: +7 812 458 83 72
E-mail: press@lsrgroup.ru
www.lsrgroup.ru