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FESCO rouble bonds more than 2.5 times oversubscribed

4 June 2013
On May 30, 2013, Far-Eastern Shipping Company plc (Company, FESCO) successfully priced three-year Russian rouble denominated exchange-traded, non-convertible bonds for a total amount of RUR 5 bln.

During the pre-marketing, investors expressed high interest in the Company bonds. As a result, FESCO extended the offering volume from RUB 3 bln to RUB 5 bln. Bookrunners received orders from different groups of investors; more than 60 accounts participated in the placement and total demand exceeded RUB 12.8 bln.

At the date of book closing, the guidance was revised to 10.25%-10.50% (from initial level of 10.50–11.00% p.a.). The deal was priced at the lower end of the new guidance with more than 2-times oversubscription. The final coupon rate amounted to 10.25% p.a. for the period to maturity.

The bonds have a call option in 1.5 years from the placement date at a price of 102.00% from the nominal value.

The placement of Series BO-02 bonds takes place on MICEX on June 4, 2013.

Yury Gilts, FESCO President and CEO commented:

The high demand for the bonds and increased offering volume confirmed the high level of investors’ confidence in FESCO Group and its strategy on the transportation market. The proceeds from the rouble bonds placement will be used only for the refinancing of the exciting debt, and will not increase the total debt of the Group. The positive effect of the rouble bonds placement includes optimization of capital structure as well as improvements in foreign currency mix.

The transaction was led by VTB Capital, Otkrytie Bank/NOMOS-BANK, Raiffeisen Bank. Placement agent — Raiffeisen Bank

Co-arrangers — EFG Asset Management, Veles, UK Ingosstrakh Investments, UK Capital

Managers — Asia-Pacific Bank, Pervobank, FC Uralsib, Promsvyazbank, UK Trinfiko, SK Ingosstrakh.

Co-managers — KB FDB, NBD-Bank, Vostochny Express Bank

These materials are not for distribution, directly or indirectly, in or into the United States (including its territories and possessions, any State of the United States and the District of Columbia). These materials are not an offer or solicitation to purchase or subscribe for securities in the United States. Securities may not be offered or sold in the United States absent registration with the United States Securities and Exchange Commission or an exemption from registration under the U. S. Securities Act of 1933, as amended. FESCO has not registered and does not intend to register any securities in the United States or to conduct a public offering of securities in the United States.

This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the «Order») or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as «relevant persons»). Any securities described herein are only available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.

This press release may include «forward-looking statements». Such statements contain the words «anticipate», «believe», «intend», «estimate», «expect», «will», «may», «project», «plan» and words of similar meaning. All statements included in this press release other than statements of historical facts, including, without limitation, those regarding financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives) are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding present and future business strategies and the relevant future business environment. These forward-looking statements speak only as of the date of this press release, and the Group expressly disclaims to the fullest extent permitted by law any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based

About FESCO

FESCO is one of the largest Russian port owners and operators with integrated rail and logistics businesses and primarily focused on intermodal deliveries of containerized cargo. The Group owns port, rail and shipping assets, which allow it to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain.

The majority of FESCO’s operations are located in the Russian Far East and the Group benefits from growing trade volumes between Russia and Asian countries.

FESCO controls the Commercial Port of Vladivostok, which has throughput capacity of 3.9 million tons for general cargo and oil products, 150,000 vehicles and over 600,000 TEUs in containers. FESCO is one of Russia’s top 10 private railcar operators providing services under the Transgarant (100%) and Russkaya Troika (50% JV with Russian Railways) brands. The Group owns a fleet of vessels mostly deployed through own line and logistics operations. In 2012, consolidated revenue of FESCO Group reached USD 1,197 million.

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