"RussNeft " Plans to Begin Placement of Debut Bond Issue to 7 Billion Rubles 16th December.
RussNeft plans to begin placement of its debut bond issue to the amount of 7 billion rubles on the 16th of December 2005. This was communicated at the presentation of the bonded loan by Senior Vice President of Alfa Bank (a lead bank of the issue) Arthur Saribekov.
According to him the rate of the first coupon on the bonds will be determined by the auction and may come to 9% annual.
The decision on the bond issue was made by the Board of Directors of RussNeft this October. 7 million securities are going to be floated by public subscription at a nominal value of 1 thousand rubles. The bond maturity is 5 years, or 1820 days. Alfa Bank stands payment and issue placement agent.
RussNeft is a vertically integrated oil holding established in 2002 by ex-president of Slavneft Mikhail Gutseriev. In the structure of Russneft there are 25 producing, refining and transporting enterprises, a modern retail network of petrol stations in 13 regions of Russian 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 total recoverable reserves of RussNeft exceed 600 million tons. Its annual oil output has come to 15 million tons of crude oil.