MLD.L Regulatory News (MLD)

7 Dec 2007 07:01

Mirland Development Corporation PLC07 December 2007 MirLand Development Corporation plc ("MirLand" or the "Company") MIRLAND CLOSES BOND ISSUANCE 7 December 2007 - MirLand, one of Russia's leading residential and commercialproperty developers, announces that it has raised approximately $63 million byissue of New Israeli Shekel ("NIS") 39,260,000 A Series bonds and NIS204,874,000 B Series bonds (together the "Bonds"). The Bonds are to be redeemedin 6 annual, equal and consecutive payments on 31 December for each of the yearsbetween 2010 to 2015 (inclusive). Interest is payable on the A Series bonds at the rate of 6.5% linked to theIsraeli consumer price index and interest is payable on the B Series bonds atthe rate of LIBOR (for dollar deposits for a period of six months) plus a marginof 2.75%, linked to the NIS/US dollar exchange rate. Interest on the Bonds willbe payable in semi annual payments on 30 June and 30 December of each of theyears from 2008 to 2015 (inclusive). Jerusalem Economic Corporation Ltd., Industrial Buildings Corporation Ltd. andDarban Investments Ltd, public companies listed on the Tel Aviv Stock Exchangewhich are ultimately controlled by a director of the Company, Mr EliezerFishman, and certain members of his family, together own 56,269,674 shares inthe capital of the Company and have subscribed for $24,909,000 B Series bondsrespectively. A private company controlled by Mr. Eliezer Fishman has, inaddition subscribed for $9,912,000 B Series Bonds. The independent directors of the Company, having consulted with Credit Suisse,the Company's Nominated Adviser, consider that the terms of the issuance of thebonds are fair and reasonable insofar as the shareholders are concerned. Commenting Moshe Morag, Chief Executive of MirLand Development Corporation plc,said: "MirLand is making significant progress in the delivery of its strategy toassemble a strong portfolio of development properties. We are delighted to havesecured this additional funding by way of the bond which will provide thecompany with greater financial flexibility and enhance our ability to deliverour exciting pipeline of property." -ENDS- For further information: MirLand Development Corporation plc +7 495 130 31 09Roman Rozentalroman@mirland-development.com Financial Dynamics +44 20 7831 3113Dido Laurimore/Nicole Marino dido.laurimore@fd.com/nicole.marino@fd.com This information is provided by RNS The company news service from the London Stock Exchange