OREANDA-NEWS. May 12, 2011. To enable continued expansion within harvesting and sawmilling, RusForest AB is issuing a bond loan. The loan, which has a term of three years, amounts to SEK 500 million (USD 80 million) with a fixed interest rate of 11% per annum, as the company said in a press release received by Lesprom Network.

Previously, the company has announced the intention to issue a bond loan in the amount of SEK 400 million (USD 64 million).

"It is gratifying that the bond issue has attracted so much interest that it was oversubscribed. Our assessment is that we now have sufficient capital market funding to carry out our expansion plans", says Martin Hermansson, CEO of RusForest.

The capital raised will primarily be used to continue the expansion within harvesting and sawmilling. RusForest will be applying for listing of the bonds on the NASDAQ OMX Stockholm.

E. Ohman J:or Fondkommission AB has been RusForest's adviser on the bond issue.

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 2.8 million cubic metres, and utilizes these resources to produce a wide range of sawnwood products.