NOVATEK Board of Directors Approves Rouble Bond Issue
OREANDA-NEWS. September 29, 2009. The Board of Directors of OAO NOVATEK (“NOVATEK” or the “Company”) today has unanimously approved the regulatory filing and potential issuance of interest-bearing, non-convertible, Russian rouble bonds (“RR bond”).
NOVATEK CEO, Leonid Mikhelson, noted that, “The Russian rouble bonds increase the Company’s financing options, which now include the credit markets and bank facilities. Our ability to access funds from a variety of sources will allow NOVATEK to obtain the necessary financing, under the best terms and conditions, thus enabling the Company to complete its mid-term capital expenditure program, in line with its overall development strategy.”
According to the issuing documents, the total maximum nominal value of the Company’s RR bond offering is RR 30 billion, with a minimum series of RR 5 billion. The prospectus is valid until NOVATEK issues the maximum amount. The RR bond issue will be divided into four series with values of RR 10 billion, RR 10 billion, RR 5 billion and RR 5 billion each, which may be issued in any order or combination. The RR bond series have a three-year maturity period and pay semi-annual coupons or a total of six coupon payments. The placement of the RR rouble bonds will take place at the Moscow Interbank Currency Exchange (“MICEX”) after the registration of the prospectus.
“The regulatory filing of this Russian rouble bond prospectus accords us the flexibility to procure additional medium term financing at competitively attractive rates as well as optimizing the currency exposure of our credit portfolio. We will continue to diversify our sources of funding and extend our credit maturity profile to better match our capital development program.” according to Mark Gyetvay, NOVATEK’s Chief Financial Officer. NOVATEK will issue the RR bond series as necessary for general corporate purposes.
Organizers of the RR bond issuance are CJSC “Investment Company “Troika Dialog” and OJSC Gazprombank.
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