SRV issues 45 million euro hybrid bond

SRV GROUP PLC                         STOCK EXCHANGE RELEASE     18 DECEMBER 2012 AT 12:50

PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, HONG KONG, SOUTH AFRICA OR JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL.

SRV Group Plc issues a EUR 45 million domestic hybrid bond. The coupon rate of the bond is 9.50% per annum. The bond has no set maturity date but the company may exercise an early redemption option after four years. The settlement date of the bond is 28 December 2012. The hybrid bond issue will strengthen SRV's capital structure and financial position. The bond was offered to selected institutional investors as private placement in Finland.

“We are very satisfied with the vast interest the bond gained in the marketplace, which encouraged us to increase the size of the bond from what we originally targeted. The hybrid bond is a suitable instrument for a temporary need of equity for SRV’s housing and business premises developing contracting projects. We are currently working in Finland and Russia on extensive projects which the hybrid bond boosts,” says Jukka Hienonen, the President and CEO of SRV.

A hybrid bond is an instrument which is subordinated to the company's other debt obligations and which is treated as equity in the IFRS financial statements. A hybrid bond does not confer to its holder the right to vote at shareholder meetings and does not dilute the holdings of the current shareholders.  

Nordea Markets is acting as coordinator and Nordea Markets and Pohjola Markets jointly as bookrunners in the transaction.

Taneli Hassinen
Vice President, Communications
taneli.hassinen@srv.fi
Tel. +358-40-504-3321

Additional information:

Hannu Linnoinen, Executive Vice President, CFO, +358-50-523-5850

This release is for informational purposes only and is not to be construed as an offer to purchase or sell or a solicitation of an offer to purchase or sell with respect to any hybrid bond. The distribution of this release and the related material concerning the issuance of the new hybrid bond are prohibited by law in certain countries. The new hybrid bond is not being offered to the public either inside or outside of Finland. Persons resident outside of Finland may receive this release and the related hybrid bond documentation only in compliance with applicable exemptions or restrictions. Persons into whose possession this release and the related hybrid bond documentation may come are required to inform themselves about and comply with such restrictions. This release and the related hybrid bond documentation may not be distributed or published in any country or jurisdiction if to do so would constitute a violation of the relevant laws of such jurisdiction or would require actions under the laws of a state or jurisdiction other than Finland, including the United States, Canada, Australia, Hong Kong, South Africa and Japan. The information contained herein shall not constitute an offer to sell or tender, or a solicitation of an offer to buy or sell SRV’s hybrid bond to any persons in any jurisdiction in which such offer, solicitation or sale or tender would be unlawful. SRV’s representatives assume no legal responsibility for such violations, regardless of whether the parties contemplating investing in or divesting SRV’s hybrid bond are aware of these restrictions or not. SRV’s hybrid bond has not been and will not be registered under the US Securities Act of 1933, nor under any securities legislation of any state in the United States, and it may not be offered, sold, resold delivered, distributed, bought or transferred in the United States or to US citizens or on behalf of US citizens, except pursuant to an exemption from the registration requirements of the Securities Act of 1933 and any applicable state law legislation.