PAVA Reports Successful Additional Bond Repurchase

Barnaul, Russian Federation (PressExposure) August 11, 2009 -- On August 4, 2009 the Altay-based grain processor PAVA fulfilled obligations on the additional repurchase of RUR1 bln. bond loan issued in November 2006.

The aggregate amount of the deals made up RUR296,056.26. Earlier, the company announced that this small remaining share would be repurchased on schedule following the previous successful transaction.

To recap, on May 6, PAVA already paid off significant part of the loan due for redemption, and reduced the company's long term debt. At that time the coupon rate stood at 12.5%, and for the additional repurchase it was increased to 19%.

Although the global liquidity crunch has had an impact on agroindustry, leading to a series of defaults, a number of companies were able to withstand the negative trends. OJSC PAVA, which recently started transition to a vertically integrated agroholding, confirmed its reliability as a borrower, adding greater investor appeal. It became the only public company in Russian agrisector to fulfill all corporate obligations in due time.

About PAVA

PAVA is one of the major grain processors in Russia. The company represents a 3% share of the national flour market. According to 2007 results, it was given the status 'Leading Exporter of the Industry' by Russian Ministry of Economic Development. Recently PAVA has developed a new strategy - creation of a vertically integrated agroindustrial holding. It is based on implementation of 2 projects: RAD (agricultural business operations) and Grainvest (deep grain processing), consolidated under GlobalAgro structure.

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Press Release Submitted On: August 11, 2009 at 2:49 am
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