St. Petersburg, 18 April, 2007: LSR Group, a diversified holding company with operations in construction material manufacturing and real estate development,, has received a loan for RUR 5 bn (approx USD194mn) from Deutsche Bank AG London. The two year loan is the largest ever received by a Russian construction company and was provided with a highly competitive interest rate.
Elena Tumanova, CFO of LSR Group commented: «Our policy of financial transparency and the stable growth of our business meant we were able to receive this financing with such favourable conditions from a global bank.»
Yuri Soloviev, Member of the Deutsche Bank Board in Russia and Head of Global Markets for Russia & CIS at Deutsche Bank said: «The LSR Group is an acknowledged leader in the construction market. We liked that the company is well managed, has ambitious development plans and great growth perspectives. Therefore we were pleased to provide financing for such a robust company.»
LSR Group has an established credit history and is a familiar name on the local debt market. The group has two bond issues traded on MICEX. The first, for a total amount of RUR 1 bn, was placed in March 2005, and the second, raising RUR 2 bn, was placed in December 2006.
Financing received from Deutsche Bank will be used for the restructuring of the company's current financial liabilities and to finance investment projects. The LSR Group's current largest projects include the construction of Russia's largest brick plant, the building of a cement factory in the Leningrad Region and further development of the company's aeroconcrete business. The LSR Group Deutsche Bank
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