OREANDA-NEWS. November 27, 2009. Today the Ministry of Finance of the Russian Federation announced the launch of its third (final) offer to exchange the Russian Federation Eurobonds due in 2010 and 2030 for eligible trade indebtedness of the former USSR which the Government of the Russian Federation has previously agreed to be legally responsible for (“FTO debt”).

This FTO Exchange Offer is being made on substantially the same financial terms as have been offered to FTO creditors within previous exchanges.

The Eurobonds to be exchanged have been previously issued by the Russian Federation and subsequently acquired in the secondary market. No new Eurobonds will be issued in connection with the exchange offer.  

Two previous exchange offers were closed on December 18, 2002 and November 28, 2006. The total principal amount of FTO claims exchanged for the Russian Federation Eurobonds made the equivalent of USD 2,4 billion.

The State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)” has been appointed by the Ministry of Finance of the Russian Federation as a Sub-Exchange Agent for the settlement of this category of sovereign external debt.   Citibank N.A., London has been entrusted with the functions of an Exchange Agent.

Copies of the Offering Circular dated November 27, 2009 containing the detailed terms of the Exchange Offer have been sent to all holders of reconciled FTO debt. An electronic version of the Offering Circular is posted on the password-protected section of Vnesheconombank’s website at  http://www.veb.ru. The holders can obtain the access password to this section from Vnesheconombank or the Exchange Agent.

For the convenience of the participating holders wishing to evaluate the Exchange Offer an   FTO Bond/Cash Calculator is available on Vnesheconombank’s website as well. It will enable each holder to calculate independently the indicative amount of 2010 and 2030 bonds as well as cash amount to be received in exchange for FTO debt tendered.

For further details with respect to reconciliation and calculation under the FTO debt please contact: The State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank)”.