The history of the Holding has its roots in Soyuzelectronstroy Association, where in 1987 Leningrad Specialized Repair and Construction Company LenSpetsRSU, which changed its name to LenSpetsSMU a year later, was founded. In 1991, the company separated from the Association and was reorganized into PKP LenSpetsSMU, which in 1995 became the Closed Joint-Stock Company Specialized Construction and Installation Association LenSpetsSMU. In 1997, LenSpetsSMU began to set up subsidiaries specializing in the execution of different construction or production works.

From this moment, the Holding has grown as a vertically integrated structure consisting of companies which execute all stages of the construction and investment process. With the formation of Etalon-LenSpetsSMU Management Company in 2001, the structure reached its current form.

In 2006, ZAO SSMO LenSpetsSMU became the first Russian construction company to receive a credit rating from the largest and most stringent international rating agency Standard & Poor’s. Since then the rating has been reconfirmed on multiple occasions. Currently, the Holding is the most highly rated construction company in Russia and Eastern Europe.

On 26 April 2007 the Holding placed Eurobonds amounting to 100 mn dollars. Their maturity date is 26 April 2012. The offer date (put option) is 26 April 2009.

In March 2009 the holders of LenSpetsSMU’s credit linked notes approved the decision on changing the parameters of CLN issue. LenSpetsSMU reached an agreement on the cancellation of the offer in April 2009, prolongation of obligations until August 2010 and mitigation of the observance procedure of financial covenants. The borrower also received the right to early redemption of the credit linked notes, which made the financial instrument more flexible. For its part, LenSpetsSMU agreed to increase the rate to 12% per annum and to fix an amortization scheme of redemption (redemption by installments). Changes in the parameters of credit linked notes have not required LenSpetsSMU to provide any collateral or sell its shares or warrants. As a result, today LenSpetsSMU has the lowest debt load of all public construction companies in Russia, both in relative and absolute terms.

In 2008, during the implementation of its development strategy and capitalization increase, Etalon-LenSpetsSMU Holding attracted the attention of financial investor Baring Vostok. An agreement between them was signed in January and the deal was completed in March 2008. As a result, Baring Vostok has become a minority partner with a 15% share in the equity capital. The globally-recognized financial investor has become a long-term strategic partner of one of the largest construction associations in the Northwest Region. Access to international capital markets and new investment will contribute to the Holding’s further development and implementation of its large-scale development projects.