For the purpose of continuing its expansion within sawmilling and harvesting, RusForest AB ("RusForest" or the "Company") is investigating the prerequisites for carrying out a bond issue of up to SEK 400 million.
Since the Company’s rights issue in November 2010, RusForest has established itself as one of few pan-Russian forestry companies with operations in both Siberia and the European part of Russia through the acquisition of LDK-3 – a presence which will be further strengthened through the proposed acquisition of Nord Timber Group. Additionally, the Company has invested in new forest leases, equipment and in the Magistralny sawmill which is planned to start test operations in April 2011.
Following the rights issue, RusForest has also paid off significant amounts of the Company’s debt, including the previous bond issued in February 2010. Of the Company’s total liabilities, amounting to SEK 172.2 million as per December 31, 2010, only SEK 42.6 million were interest bearing (of which SEK 9.0 million related to interest bearing liabilities associated with assets classified as held for sale). With total assets amounting to SEK 1,151.3 million per the same date, the Company is subsequently well suited to finance its coming expansion also with debt.
For the purpose of continuing its expansion programme with regards to forest resources, harvesting capacity and sawmilling, the board of RusForest has therefore engaged E. Öhman J:or Fondkommission AB to investigate the prerequisites for a capital raising in the bond market with a maximum volume of SEK 400 million.
For further information please contact:
Martin Hermansson, CEO, phone: +7 903 015 64 65, +7 985 921 92 32
or
Erik Löfgren, External Relations, phone: +46 705 45 34 20
About RusForest AB (publ)
RusForest is forestry and sawmilling company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long term forest leases with an annual allowable cut of approximately 2 million m3, and utilizes these resources to produce a wide range of sawnwood products. Eastern Siberia is renowned for its Pine and Larch of exceptional quality, while the Arkhangelsk Region in northwest Russia has high quality spruce and pine forests similar to those found in northern Sweden.
RusForest offers a unique opportunity to invest in Russian forestry: www.rusforest.com RusForest AB’s Certified Adviser on First North is E. Öhman J:or Fondkommission AB.
