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SETL GROUP ENTERS THE PUBLIC BORROWING MARKET

2017 october 05

Today, on October 5, Setl Group announced the assignment of an identification number to the approved exchange-traded bonds program on the Moscow Stock Exchange. The maximum total nominal volume of the program is 25 billion rubles inclusive. Bonds are placed under the program by public subscription for a period of up to 10 years. The term of the exchange-traded bonds program is 99 years.   The company is planning the first bond issue under the approved program in Q4 2017. The funds to be borrowed are expected to be spent for the development of the targeted program and for loan portfolio optimization. Information on the volume and terms of the issue will be announced soon. This is Setl Group’s second entry to the public borrowing market. The company launched its début securities issue in 2007, successfully placing bonds worth 1 billion rubles. The loan was fully repaid in May 2012. Setl Group is one of the most successful and actively developing construction companies in Russia. In 2016, the company became the largest developer of the country in terms of the volume of commissioned housing, having put into operation about 1 million m2 of total area (according to the rating of the National Association of Housing Developers). In terms of current construction volumes, the company has been consistently among the top three leaders of the Russian Federation, while its head, Maxim Shubarev, has been declared the Developer of the Year according to Delovoy Peterburg newspaper in 2017. In 2016 the revenue of the Setl Group holding company according to IFRS was 61.3 billion rubles (an increase by 35% as compared to 2015), while its net profit was 5.8 billion rubles (an increase by 34% as compared to 2015). "Taking into account the positive current state of the bond market, Setl Group’s strong sector indicators and the low debt burden, we expect a keen demand for the holding company's bonds," Yan Izak, CEO of Setl Group, comments. - Setl Group’s Debt/EBITDA (gross) ratio was 1.02х in 2016, which is the lowest value of this indicator among large public developers". It is to be recalled that in June 2017, Setl Group was assigned credit ratings of the S&P international rating agency ("B +", stable outlook) and of the ACRA national rating agency (BBB(RU), stable outlook). ACRA justified its position by the strong business profile of Setl Group, its high business profitability, low debt burden and strong liquidity. From S&P's point of view, positive rating factors for Setl Group are the long-term profit growth, its focus on the broad target market, a significant amount of land plots and an effective apartment sale network represented by its own real estate agency.

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Companies of Setl Group holding