Vneshtorgbank has announced that a syndication is formed to place the second issue of East Line Handling`s bonds worth RUR 3 billion at par.
Lead manager and underwriter of the placement is Vneshtorgbank.
The leading underwriters are NOMOS-BANK, Renaissance Capital, Gazprombank, ROSBANK, and SOYUZ Bank.
Among the co-underwriters of the placement are MDM-Bank, Moscommertsbank, Svyaz-Bank and URALSYB.
The bonds will be placed by an open subscription on the MICEX trading platform on May 26, 2005.
East Line Handling`s bonds are issued to bearer with its nominal value totaling 3 billion Russian Roubles. The issue was registered on December 30, 2004, under State Registration No. 4-02-06006-N. Guarantors of the Issue are the leading companies of East Line Group - DOMODEDOVO Terminal, DOMODEDOVO International Airport and DOMODEDOVO Jet Service. Maturing in 1,095 days (3 years), the bonds have six semiannual coupons. First, second and third coupons` rates are equal and will be auctioned. Other coupons` rates are to be defined by the Issuer. Bond holders will be entitled to an early redemption at their par value in a year and a half - on the third coupon payment date. An official irrevocable offer for the bond redemption was published in the Vedomosti newspaper, on May 16, 2005.
Financial advisory services to the issue placement are provided by Federal Stock Corporation, with the NDC acting as a depository and paying agent.
Further information about the issue structure and financial position of the Issuer can be found in issue documents and information memorandum placed on the web-sites of the Issuer ( (www.eastline.ru) and Vneshtorgbank (www.vtb.ru).
East Line Handling plans to channel the bond placement proceeds into the construction of T2 terminal, reconstruction of aerodrome complex under category III IKAO conditions, renovation and construction of fueling units and other elements of DOMODEDOVO Airport infrastructure.
East Line Group runs the largest airport of both Russia and East Europe - Domodedovo. at 2004 year-end, aggregate proceeds gained by the Russian companies of the Group reached $450 million, with their net income exceeding $58 million.
Major shareholder of the East Line Group is FML Limited (ratings by S&P - "B-", "ruВВВ-") which is registered on Isle of Man.