Bashneft Places Series 04 Corporate Bonds

February 21, 2012
Bashneft has placed series 04 certificated interest-bearing non-convertible bearer bonds (the state registration number 4-04-00013-A of 29 September 2011) with a total par value of 10 billion rubles and obligatory centralized custody. The bonds have a maturity period of 10 years (3640 days) and a put option after 3 years.

Investors have placed 34 orders for series 04 bonds with a coupon rate ranging between 8.49% and 9.00%. Based on the marketing results, the rate on the first coupon of series 04 bonds has been set at 9.00% annually.

«The bond issue is yet another step towards a more efficient debt capital structure of the Company," stated the President of JSOC Bashneft Alexander Korsik. «The fair and balanced judgment made by investors has enabled us to expand the range of investors and to attract investments at an optimal rate despite the continuing economic instability. The results of the placement confirm the investors’ interest in the Company’s securities and the Company’s long-standing reputation as a reliable borrower in the capital market.»

The transaction for the series 04 bonds was settled on 17 February 2012, with OJSC Sberbank of Russia acting as the placement agent.
The placement was organized by GPB (OJSC) and OAO Sberbank of Russia, with Troika Dialog as the co-organizer, the GLOBEX Bank as the underwriter and the Region brokerage company as the co-underwriter.

Note: The decision to issue 04 and 05 series corporate bonds with a total par value of 20,000,000,000 (Twenty billion) rubles was made by the Board of Directors of JSOC Bashneft on 22 July 2011.

The Federal Financial Markets Service of the Russian Federation (FFMS) registered two issues of series 04 and 05 certificated non-convertible interest-bearing bonds of JSOC Bashneft on 29 September 2011.

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