OREANDA-NEWS. June 18, 2010. RAZGULAY Group OJSC has announced fulfillment of its obligations under the bond offers of “Razgulay-Finance” LLC, series 02, 03 and 04, reported the press-centre of RAZGULAY Group.  

Holders of the securities under the offers have exercised their put option on the bonds of “Razgulay-Finance” LLC, series 02, 03 and 04, with the total nominal value of 688,580,000 rubles. The issuer has fulfilled its obligations under the offers in full and in time.

Let us remind that in the second and the third quarters of the year 2009 the Group restructured successfully its liability for the above bond issues by means of partial redemption of the securities and rescheduling of the remaining debt until the year 2010.

So, according to the results of the offers in the year 2010, the Group discharged in full its obligations to the bondholders.

At the moment, there are outstanding bonds of “Razgulay-Finance” LLC, series 02, 03 and 04, on which the holders did not exercise the put option. The total nominal value of such bonds is less than 62,000,000 rubles, which is less that 0.8% of the total price of the three issues.

Placement of the bonds of “Razgulay-Finance” LLC of series 02, 03 and 04 took place on October 03, 2006, March 23, 2007 and May 28, 2008 respectively. The total price of the three issues amounts to 8,000,000,000 rubles. The maturity of the bonds is 5 years.

“The execution of the offers on the bonds in the year 2010 is a logical and successful result of the global efforts of the Group related to the restructuring of its credit portfolio”, Dmitry Tyukhtenko, General Director of RAZGULAY Group OJSC, says. “We improved significantly on its structure and quality, and strengthened the credit standing of the Company. The measures taken enable us to expect further decrease of interest rates and efficient solution of the issues of financing”.

Information on the company
RAZGULAY Group OJSC is one of the major vertically integrated agricultural companies in the Russian Federation, with presence in 18 regions of the Russian Federation, and the number of employees of about 14,000 persons.

The structure of the Group comprises the managing company RAZGULAY Group OJSC, three industrial sub-holdings – Grain, Sugar and Agricultural, as well as a unit intended for liaising with retail chains – “Razgulay-Market” LLC.

The sugar sub-holding controls about 14% of the sugar market of the Russian Federation, its business assets include 10 sugar plants and 1 milk-canning plant, with the total production capacity: 4 million tons of sugar beet and 1.4 million tons of raw sugar per annum. The production of sugar in the year 2009 amounted to more than 450 thousand tons.

The business assets of the Grain sub-holding comprise the largest in the Russian Federation chain of elevators (12 linear granaries with the capacity of 2.4 million tons), 2 major rice-processing plants, a plant for production of oats and buckwheat (the processing capacity amounts to 380 thousand tons p.a.), 7 milling plants. The Groups exports over 1 million tons of cereals p.a., and participates actively in the program of the governmental intervention as to grain (the elevators of the Group contain over 7% of the intervention fund).

The Agricultural sub-holding controls over 460 thousand hectares of land, including 332 thousand hectares which were cultivated in 2010. The structure of the sub-holding comprises 23 agricultural companies in 11 regions of the Russian Federation. The main crops are cereals, sugar beet, paddy rice, soya beans. In the year 2009, over 1.4 million tons of sugar beet and over 0.7 million tons of cereals and other crops were grown.

 “Razgulay-Market” LLC engages in packing and distribution of the Group’s products in retail chains. At the moment, contracts have been signed with the key-players of the market - X5 Retail Group, “The kopeck”, “The Magnet”, “Auchan”.