OJSC LSR Group (LSE: LSRG; MICEX, RTS: LSRG) has decided to place Series BO-01 certificated interest-bearing non-convertible bearer bonds of OJSC LSR Group with mandatory safekeeping in a securities depository with a total value of RUR 1.5bn. The bonds will be placed through public subscription. The placement commencement date is 29 June 2010.

The identifying number of the issue is 4Â02-01-55234-Å dated 24 November 2009. The number of bonds to be placed is 1.5 million with a nominal value of RUR 1,000 each. The placement will be made via book-building. The book-building process is to start at 10.00 a.m. (Moscow time) on 22 June 2010, and to be completed at 5 p.m. (Moscow time) on 25 June 2010.

Circulation period of the bonds is 1092 days since the commencement date. The put option will be executed after the fourth coupon period.

The first coupon rate will be determined by the issuer based on the book-building results, no later than one calendar day before the bonds placement commencement date. The interest rate of the second, third and fourth coupons will be equal to the first coupon rate.

The placement is conducted by the Financial Corporation Uralsib and Sberbank of Russia.

Elena Tumanova, CFO of LSR Group, comments:
“LSR Group had always a well-balanced financial policy.  We are used to seek financing for fulfillment of obligations and redemption of our credit portfolio in advance. Taking into consideration that we have already redeemed the debt for 2010, we are planning to use the proceeds from the placement of our new bond issue to refinance our short-term debt maturing in 2011”.