Federal Service for Financial Markets, or FSFM, registered the report on the results of the debut bond issue of RussNeft OAO by a resolution dated December 12, 2005. The information was conveyed in a statement of FSFM.
The floatation of the bond issue was done at Moscow Interbank Stock Exchange on December 16, 2005. The issue consists of 7 million securities of RUR 1 thousand nominal value. The maturity period of the bonds is five years. The rate of the first coupon was determined by bidding in the course of the floatation as equal to 9.25% per annum corresponding to 9.46% of yield to maturity index.
The bond issue is to be covered by semi-annual coupons. The rate of the first coupon shall be determined by bidding on the day of floatation and fixed for the period prior to the offer. The rate of the subsequent coupons shall be set by the issuer. The offer for the bond purchase is to be made in three years.
Alfa Bank stands as an underwriter and payment agent of the bond issue. The National Depository Center will act as a depository.
RussNeft is one of the ten first-rate oil companies of Russia. The annual oil production of the company is 14.5 million tons. The proved reserves of RussNeft exceed 537 million tons of crude oil.
According to the international standards of financial accountancy, last year receipts of RussNeft grew to RUR 36,457 billion against RUR 7,365 billion in 2003, net profit to RUR 3,51 million against RUR 807 million. According to the results of the current year the company relies to make $3.5 billion and increase its EBITDA index up to $600 million.
Along with the company’s President Mikhail Gutseriev some of his business partners are the shareholders of the company. Stakes at three RussNeft’s oil producing entities, Varieganneft, Ulyanovskneft and Nafta-Ulyanovsk, are held by international crude trader Glencore
