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Vneshtorgbank raised unprecedentedly cheap funds on domestic capital market

26 April 2004

A public offering of Vneshtorgbank`s fourth rouble-denominated coupon bearer bonds in paper format took place on 25 March 2004 on the MICEX (official registration number is 40301000В of 9 January 2004).

Issueount is 5 billion roubles at par value. Tenor is 1,820 days. Bonds have ten semi-annual coupons. Vneshtorgbank published an offer envisaging put option with a 100% issue price from the face value due and payable on 25 March 2005.

In the course of the public offering, 43 investor applications were submitted totalled 5.82 billion roubles with the first offered coupon rate ranging from 5.0% p.a. to 8.0% p.a. The first coupon value determined on the public auction was 5.43% p.a. (27 roubles 08 kopecks per bond), the second coupon rate is equal to the first coupon rate, and rates with respect to the remaining coupons will be determined by the Issuer.

Bond effective yield to annual put option was all-time low for the Russian corporate bond market at 5.50% p.a.

Upon results of the public auction, 35 investor applications were satisfied. All bond issue was distributed in the course of the public offering the first day of the distribution.

Vneshtorgbank acts as an arranger, an underwriter and a payment agent of the issue.

International Moscow Bank and Citigroup were appointed to act as lead underwriters.

Underwriters of the issue are Industrial and Construction Bank, Dresdner Bank Russia, ABN-AMRO Bank Russia, Vizavi bank, Deutsche Bank Russia, ING Bank (Eurasia), NOMOS Bank, ZAO Raiffeisen Bank Austria. Custodian of the issue is National Depository Centre. Custodian of the issue is the National Depository Centre.

Once the bonds are placed on the secondary market, the MICEX market-maker syndicate is going to maintain secondary market liquidity for Vneshtorgbank series 04 bond by making two-sided quotations having a spread under 0.3% out of par value.

You can have access to bond issue documents and the information memorandum at Vneshtorgbank`s Web site ( and Web sites of underwriters of the issue.

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