OREANDA-NEWS. On July 06, 2007 JSC SITRONICS (“SITRONICS” or “The Company”) (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in Russia and the CIS, with a growing presence in other EEMEA emerging markets, announced that SITRONICS’ Board of Directors approved two Ruble-denominated bond issues in the amount of RUR 3 billion (approximately US$ 115,8 million) and RUR 2 billion (approximately US$ 77,2 million), respectively, later in 2007 and the appointment of Troika Dialog as Agent and Book Runner for these issues, reported the press-centre of  OJSC SITRONICS.
 
The Company has also signed a RUR 2.6 billion (approximately US$ 100.3 million) bridge financing agreement with Troika Dialog. The bridge financing in the form of promissory notes carries an annual coupon of 7,85% and matures on September 25, 2007. The short-term bridge financing was used to redeem a part of the Company’s US$ 200 million Eurobond Notes on June 27, 2007.
 
The proceeds from new Ruble-denominated bond issues are expected to be used in part to repay the bridge financing and may be used in part to replace the short-term debt of the Company and finance the working capital needs.
 
Mr. Dmitry Ivanov, Chief Financial Officer and First Vice President for Finance and Investments, commented: “The new bond issues and the bridge financing are a part of our previously announced refinancing program. As stated before, the intention is to replace US dollar-denominated debt with Ruble-denominated borrowings, in order to match our primary operating and reporting currency and thereby increase the visibility of our cash flows”.