Oil Company RussNeft OAO is to start placement of its debut bond issue to 7 billion rubles on December 16, 2005, an official statement of the company said. Earlier this date was mentioned as possible day of RussNeft’s bonds placement by Arthur Saribekov, a CEO of Alfa Bank, the issue leader. At Alfa Bank valuations, the rate of the first coupon covering the bonds to be determined by bidding on the date of placement will be about 9% annual.
The decision on the bond issue was made at a board meeting of RussNeft in October this year. It is planned to place by public subscription 7 million securities at a nominal value of one thousand rubles. The bond maturity period is 5 years, or 1820 days. Alfa Bank is going to be payment and placement agent.
RussNeft is a vertically integrated oil holding established in 2002 by Mikhail Gutseriev. In the structure of the company there are 25 producing refining and transporting enterprises, a retail network with petrol stations in 13 regions of Russia and CIS. RussNeft operates in Western Siberia, Tomsk, Novosibirsk, Ulyanovsk, Penza, Samara, Bryansk and Leningrad regions, Krasnodarsky krai, republics of Udmurtia, Komi and Belarus. RussNeft total recoverable reserves exceed 600 million tons. Its annual oil output is 15 million tons.
