OREANDA-NEWS. January 13, 2009. For the first time from the beginning of global financial crisis on the western stock exchange there was a new Russian issuer. Concern "Tractor Plants" has lead listing and has placed GDR at the Frankfurt stock exchange, reported the press-centre of Tractor Plants.

During the placement procedure the Concern has been estimated at EUR2,5 billion. It is below the minimal threshold of cost which owners of the "Tractor Plants” announced in the spring, but a good level in conditions of crisis, as analysts mark.

On Saturday late at night the Concern "Tractor Plants" informed, that it’s parent company “Concern Tractor Plants N.V.” (CTP, it is registered in Holland) the day before the New Year has received a listing at the Frankfurt stock exchange and has placed global depositary receipts (GDR) among investors.

Receipts were on sale for EUR 20 apiece, each of which there corresponded to 0,2 shares of the CTP (yesterday GDR cost already EUR 21,2, that is since December have risen in price for 6 %). What holding of the CTP’s shares as a result has been sold as well as who became the buyers, people in the "Tractor Plants" refused to disclose — in the message of the Concern it is just announced, that during the placement it has been priced by investors at EUR 2,5 billion.

Principal owner of the “Tractor Plants” Mr. Michael Bolotin (before the placement owned 80 % of the CTP’s shares) has explained ”Ъ“, that neither himself, nor his partner on business Mr. Albert Bakov (owned 20 % of the CTP’s shares) did not sell the personal shares —investors has been offered an additional emission of the CTP’ papers.

Concern "Tractor Plants" — the largest in Russia manufacturer of tractors and industrial machinery. It incorporates the joint-stock company "Promtraktor", the joint-stock company "Onezhski tractor zavod", the joint-stock company "Kurganmashzavod", the joint-stock company "Kraslesmash", the Danish manufacturer of forestry machinery “Silvatec” and the joint-stock company "Agromashholding " — the second-largest manufacturer of combines in Russia.

The last mentioned company supervises the joint-stock company “Krasnoyarsk Plant of combines”, the joint-stock company "Volgograd tractor Plant", the joint-stock company "Lipetsk tractor", the joint-stock company "Vladimir motor-tractor plant", the joint-stock company "Altay motor plant". Proceeds of the Concern in 2007 — US1,3 billion

"Tractor Plants" — the unique Russian emitter who has placed papers at the western stock exchange during the economic crisis. Michael Bolotin has explained his desire to lead IPO right now as that "crisis — the best time for new purchases". As he said, means from the placement will be forwarded onto refinancing of the credits taken by the "Tractor Plants" for purchasing of new assets, and both already executed and in process transactions (a short-list of five enterprises is being considered). Earlier sources of ”Ъ“ in the “Tractor Plants” said that all transactions on purchasing of new assets will cost to the Concern approximately US 300 million (EUR220 million). Yesterday Mr. Bolotin confirmed this figure to ”Ъ“, noted, that "it is refinanced in Frankfurt not completely".

In March, 2008 people in the "Tractor Plants" said, that during IPO they would attract a minimum of US 500 million (EUR370 million, see ”Ъ“ from March, 24th, 2008). However, yesterday Michael Bolotin specified, that in first half-year the CTP might lead a secondary placement (SPO) for refinancing of the credit portfolio. Now the debt of the "Tractor Plants" is close to US 800 million (? 590 million), Mr. Bolotin said, not having specified EBIDTA (planned proceeds of the Concern in 2008 — nearby EUR 1,5 billion). What volume of means can be attracted during SPO, Mr. Bolotin did not say.

According to sources of ”Ъ“, familiar with details of the placement of the "Tractor Plants", “the buyers of the CTP papers were several investment foundations from Switzerland". The arrangement on purchase of the CTP’ papers has been reached with investment foundations long before the first day of the Dutch company’s listing in Frankfurt. Mr. Bolotin refused to make comments on that. He noted only, that the Concern attracted investors with "balancing of product portfolio".

Michael Bolotin admits, that "sales of agricultural machinery had stopped, and sales of road-building machines had fallen to 20 %", but assures, that the general decrease in proceeds of the "Tractor Plants" in the fourth quarter "did not exceed 7–10 %". The matter is that up to 30 % of sales of the Concern it is due to military and railway mechanical engineering, and these segments in September-December, 2008 have grown on 100 % and 24 % accordingly. For the benefit of the "Tractor Plants" the Concern is included in the list of the enterprises which can count on state support, Michael Bolotin speaks.

Michael Pak from ИФК "Metropol" marks, that the "Tractor Plants" was placed "hardly below the minimal threshold about which had spoken itself" (in March, 2008 the Concern estimated itself as a minimum in US3,5 billion).

In the falling market it is normal, the analyst speaks. He agrees that segments of military and railway mechanical engineering in conditions of crisis become "the most interesting in the” Tractor Plants “because, as a matter of fact, are the State order". Michael Ljamin from Bank of Moscow adds, that the basic business of the "Tractor Plants” "all the same there is an agricultural mechanical engineering, and warehouse stocks in this segment reach three-monthly volume". The future of this kind of business is obscure, the analyst marks, and the placement "has for certain passed successfully in much respect to preliminary arrangements with investment foundations".