OREANDA-NEWS. On May 23, 2007 JSC SITRONICS (“The Company”) (LSE: SITR), a leading provider of telecommunications, IT and microelectronic solutions in emerging markets of Russia and the Commonwealth of Independent States, with a growing presence in Central and Eastern Europe, the Middle East and Africa, announced that its 100% owned subsidiary Sitronics Finance S.A. will redeem US$ 200 million of outstanding Eurobond Notes due 2009 on June 27, 2007, reported the press-centre of  JSC SITRONICS.


Sitronics Finance S.A. will redeem the Notes with a coupon rate of 7,875%, which were issued in March 2006, at a principal amount plus the applicable premium (as defined in the terms and conditions to the Notes) and an accrued and unpaid interest, if any, on the Notes up to but not including the redemption date. As it was previously stated in SITRONICS IPO Prospectus, the Company plans to use approximately 25% of the IPO proceeds in the total amount of US$ 356,4 million for the repayment of its indebtedness. In accordance with this intention, SITRONICS plans to redeem approximately US$ 100 million of Eurobonds using IPO proceeds. This will allow the Company to reduce its total debt and to improve its leverage position.

 
The remaining part of the Eurobond issue is expected to be redeemed through the issuance of Ruble-denominated financial instruments. This will help SITRONICS to hedge its currency risks. Mr. Dmitry Ivanov, Chief Financial Officer and First Vice President for Finance and Investments of SITRONICS, commented: “The redemption of the Eurobond notes and the refinancing of approximately half of the issue into the Ruble-denominated debt reflects prudent borrowing and foreign exchange hedging policy in the Company. Approximately 44% of Sitronics’ revenues are generated in Rubles. The refinancing of the US dollar denominated debt into Rubles will allow us to increase the visibility in our cash flows”.


The Trustee for the Notes is Deutsche Trustee Company Limited and the Principal Paying and Transfer Agent is the London Branch of Deutsche Bank AG.