Investor Relations

Oct 11, 2013

UVZ successfully places bonds at MICEX

OJSC “Research and Production Corporation “URALVAGONZAVOD” successfully completed MICEX placement of BO-01 and BO-02 series bonds. The order book contains bids from 25 investors. As a result of marketing annual coupon rates were set at the lower limit originally announced when issued at 9.00% - 9.25%. During the book-building rates spread was narrowed to 8.95% - 9.15% per annum. UVZ bonds total demand amounted to 10.35 billion rub. in the finally announced price range.

Rate of coupons 1-3 were fixed at 9% which yielded 9.2% to 1.5 year put option.

The issuing was arranged by Gazprombank (Open Joint - stock Company), ОТКRITIЕ Вапk (JSC) / "NOMOS-BANK" (OJSC), Russian Agricultural Bank (OJSC), BANK "ROSSIYA" and Sviaz-Bank.

Sberbank CIB (CJSC) was the co-arranger of the placement.

KIT Finance bank and OJSC "IC RUSS-INVEST» acted as co-underwriters.

The deal is one of the few debt placements of Russian multi-industry machine-building companies. Successful marketing results on debt securities of OJSC “RPC “URALVAGONZAVOD” also prove the issuer’s credit quality, which had been reasonable evaluated by investors.

Deputy CEO, Chief Financial Officer of OJSC “RPC “URALVAGONZAVOD” Ruslan Kondrashov said: “In spite of the challenging market, our deal is successfully closed. Within current market developments investors are very selective and consider only high-quality issuers - the leaders of their industries. The emphasis is on recession-proof business model, good credit record and strong financial and operational performance. We are pleased that the 'real money' account approved of the credit quality of UVZ Corporation by numerous bids and rates at lower limit of the credit spread. We sincerely thank all investors who participated in this deal."

UVZ completed MICEX (Moscow Interbank Currency Exchange) book-building placement on July 18, 2013. GPB (JSC) was the placement agent. The depositary and paying agent – National Settlement Depository.

The proceeds from the bonds will be used to diversify the debt portfolio of the URALVAGONZAVOD Corporation.

For information

OJSC «Research and Production Corporation «URALVAGONZAVOD» (UVZ) is a Russian corporation that integrates over 20 industrial enterprises, R&D establishments and design engineering bureaus in Russia and Europe. It produces about 200 kinds of products: military equipment, road-building machinery and railway vehicles.

Uralvagonzavod Corporation is the largest in the CIS manufacturer of railway cars with a market share of about 35%, and Russia's only producer of T-90 heavy tank and special equipment on its base.

The Government of the Russian Federation owns 100% of the UVZ shares via Rosimushchestvo (The Federal Agency for State Property Management). UVZ is in the list of backbone enterprises of the Russian economy. The Russian government regularly makes contributions to the share capital of URALVAGONZAVOD and partially compensates its interest expense. In 2011 Vladimir Putin approved of allocating 64 billion rub. for financing of UVZ Corporation modernization under the Federal Target Program "Development of the military-industrial complex of the Russian Federation”.

Over the last years URALVAGONZAVOD Corporation shows strong sales growth – more than 2.5 times since 2009. UVZ revenue in 2012 amounts to 96.9 billion rub. compared to 44.6 billion in 2009. Revenues of the UVZ integrated structure in 2012 were over 170 billion rub.

UVZ consolidated leverage (debt/EBITDA ratio) at year-end 2012 is at 1.8x.

UVZ finds it crucial to increase its financial visibility and plans to publish IFRS financial statements for the years 2010-2012 (the auditor - KPMG) and get credit ratings from international agencies (Fitch Ratings and/or Moody`s Investors Services).