OREANDA-NEWS. July 9, 2007. MIEL-FINANCE (an affiliate of the Miel Investment Development holding) is planning the placement of its debut ruble bond guaranteed by GOLDMINE and MIEL REAL ESTATE.

The issue is priced at RUR 1.5 bn for a 3 year term. Price guidance for the 1st coupon is estimated at 12-12.5% per annum with the effective yield at 12.25 – 12.75%.

The MIEL bond issue features a covenant that provides an early call in the event the operating assets of the two guarantors fall below RUR 2.1 bn, based on the results of each fiscal quarter. The operating assets of GOLDMINE and MIEL REAL ESTATE totaled RUR 21 bn at the end of 2006.

According to Evgeniy Plaksenkov, Financial Director of MIEL, “With this debut issue we are aiming to establish MIEL’s credit history on the debt market, increasing its transparency and investment attractiveness. This is supported by full disclosure about the shareholder structure, business structure and the financial state of the company, analyzed by project. This is quite unique for the real estate market. We will direct the attracted funds to the company’s investment projects and to increase the turnover of working capital.”

MIEL was founded in 1990 and has since become one of the major players on the real estate market. It mainly operates in and around Moscow, but is also represented in many Russian regions: Saint Petersburg, Omsk, Barnaul, Tyumen, Tula, Serpukhov and Obninsk. The company mitigates segment and regional fluctuations through wide product diversification and large-scale regional coverage.

In 2006 the company increased its presence on the market for new construction in Moscow and Moscow Region from 6.4% to 7.1%. The best results were reached on the Moscow Region primary market, where the company’s share grew from 3.9% to 4.9%. MIEL’s market share in new construction in Moscow came to 9.2% for 2006.

The company’s current investment and development projects are estimated at 984,500 square meters – one of the largest in the industry.

MIEL’s competitive advantages are its many years of successful real estate activity, its spotless reputation as a borrower with leading Russian banks and its long-term partnerships with leading construction companies.

At the beginning of 2007, the renewed Board of Directors was entrusted with overall strategic management and coordination of the company’s business direction. The Board of Directors consists mainly of independent directors, a move which guarantees an impartial and comprehensive outlook on the strategic development of the company, transparency of its operations and independence in decision making.

In 2006 MIEL adopted a financial strategy envisaging the transfer of its financial statements to International Financial Reporting Standards and in 2007 formed a new accounting policy based on international standards. For 2008 MIEL is planning to present consolidated financial statements for the entire holding audited by international auditors.