Samolet Seeks $550M State Bailout to Avert Default Amid Rising Costs
Russian property developer Samolet has requested a 50 billion ruble state loan to stabilize its finances. The company, which has faced rising costs and shrinking margins, warned of potential defaults without support. Its shares dropped over 8% on the Moscow Exchange after the news emerged.
In mid-January, Samolet's leadership wrote to Prime Minister Mikhail Mishustin seeking a three-year concessional loan. The funds would help cover debt and avoid missed payments to investors. The firm described such requests as common practice across industries.
The company's financial struggles come despite strong recent performance. In the first half of 2025, revenue hit nearly 171 billion rubles under IFRS, up 25% year-on-year. Pre-tax profit reached 2.4 billion rubles, outperforming rivals like PIK Group and LSR Group. Demand in Moscow and St. Petersburg drove growth, but profit margins in affordable housing remained thin.
Debt reduction has been a key focus since late 2024. Over the past year, Samolet cut corporate debt by 28 billion rubles and increased secured borrowing from 71% to 78%. Yet long-term liabilities still stood at 475 billion rubles by June 2025, while short-term obligations rose to 477.9 billion rubles. The CEO cited high loan costs and losses from 'consumer terrorism' as additional pressures.
The request for state aid follows a period of cost-cutting and liquidity improvements. If approved, the loan would ease immediate financial strain and reduce default risks. The company's next steps depend on the government's response to its proposal.
