Open Investments Profit Rises 50%

Property developer Open Investments has reported a rise of around 50 percent in net profits to $86 million in 2007 and said the value of its assets doubled to $3.5 billion.

Open Investments, which focuses on residential real estate and office space in Moscow, said last week that 2007 revenues, to international financial reporting standards, almost doubled to $165 million.

Denis Davidko, the company's chief financial officer, told reporters that the firm planned to raise around $1 billion through an additional share issue and borrowings to fund its investment program, which will amount to $1.4 billion this year.

The firm would issue new shares equal to 11 percent of its share capital in the first half of 2008, Davidko said. The stake is currently worth around $400 million based on market prices.

Davidko also said the firm would attract $500 million to $600 million in banking loans and via a credit linked note issue scheduled for the second half of 2008.

Last month, Open Investments issued $100 million, five-year CLNs with an annual interest rate of 10.45 percent.