RussNeft to Place Debut Bond Issue not Later than 16 December to 7 Billion Rubles at 9% Annual Coupon Rate.
Oil and Gas Company RussNeft OAO is going to place a debut bond issue not later than 16th December this year to the amount of 7 billion rubles. The news was announced by Vice-President of Alfa Bank OAO Arthur Paribekov. The bank is to lead the issue.
According to him, the coupon rate will be determined at floatation and come to about 9% annual.
As Prime-TASS informed earlier the Federal Service for Financial Markets (FSFM) at its meeting on the 24th November 2005 registered the issue of documentary non-convertible interest-bearing bonds of 01 series by Oil and Gas Company RussNeft OAO to the total amount of 7 billion rubles. The issue was listed under state registration № 4-01-39134-H.
This October RussNeft’s Board of Directors made a decision to float 01 series bonds to the amount of 7 billion rubles. The way of placement is by public subscription at the Moscow Interbank Currency Exchange. The price of placement is set as 100% from the nominal value.
The maturity period of the bonds is 1820 days, or five years. An offer is planned in three years. The bonds will be covered by 10 semiannual coupons. The rate of the first coupon shall be determined by bidding on the day of placement; the rate of the other coupons is to be set by the issuer.
Guarantors of the issue stand Belkamneft OAO, Varieganneft OAO and Aganneftegazgeologia OAO. Additional offer may be presumably made by Belkamtrade LLC.
RussNeft, a vertically integrated oil holding, is one of the ten first-rate oil and gas companies of this country. In the structure of Russneft there are 25 producing, refining and transporting companies, a retail network of petrol stations in 13 regions of Russia and CIS. RussNeft operates in Western Siberia, Tomsk, Novosibirsk, Ulyanovsk, Penza, Samara, Bryansk and Leningrad regions, Kranodarsky krai, Republics of Udmurtia, Komi and Belarus. The company’s headquarters are in Moscow. The total recoverable reserves of RussNeft exceed 600 million tons. Its annual oil output has come to 15 million tons of crude oil.