PRESS RELEASE The Ministry of Finance of the Russian Federation announced that it has launched an offer to exchange Russian Federation Eurobonds due 2006 to 2010 and Russian Federation Eurobonds due 2007 to 2030 for eligible trade indebtedness of the former USSR
Moscow, November 20. The Ministry of Finance of the Russian Federation announced that it has launched an offer to exchange Russian Federation Eurobonds due 2006 to 2010 («2010 Bonds») and Russian Federation Eurobonds due 2007 to 2030 («2030 Bonds») for eligible trade indebtedness of the former USSR («FTO Debt»).
The terms of exchange will be substantially similar to the terms offered to creditors in Russia’s August 2000 London Club restructuring. The terms of the FTO exchange offer were previously agreed in principle with the Forum of Trade Creditor Group Representatives, representing holders of FTO Debt located in twelve countries.
The 2010 Bonds and the 2030 Bonds to be issued in the FTO exchange will accrue interest from March 31, 2000 and will be fungible in all respects with the existing 2010 Bonds and 2030 Bonds issued in connection with Russia’s August 2000 London Club restructuring. The 2010 Bonds provide for the payment of 9.5% of their initial principal amount on the date of issue. Except as otherwise provided in the FTO exchange offer, participating creditors will, in addition, receive all of the interest payments that would have been made on their 2010 Bonds and their 2030 Bonds if such bonds had been issued in connection with Russia’s August 2000 London Club restructuring.
Detailed terms of the exchange offer will be set forth in an Offering Circular, copies of which are being sent to all holders of reconciled FTO Debt. Beginning November 21, 2002, holders of reconciled FTO Debt may also obtain copies of the Offering Circular from the password-protected section of Vnesheconombank’s website at http://www.veb.ru/fto. The user name and password for Vnesheconombank’s website can be obtained from Vnesheconombank or the Exchange Agent.
To assist holders of reconciled FTO Debt in evaluating the exchange offer, an FTO Bond/Cash Calculator will be available on the Ministry of Finance’s website at www.minfin.ru and on Vnesheconombank’s website. The FTO Bond/Cash Calculator will calculate the indicative amount of bonds and cash that will be received in exchange for tendered FTO Debt. The actual amount of bonds and cash that will be received by participating holders will be determined by Vnesheconombank in accordance with the terms of the exchange offer.
As of November 19, 2002, U.S. $1.6 billion principal amount of FTO claims have been submitted for reconciliation, and U.S. $1.1 billion principal amount of FTO claims have been reconciled and confirmed as eligible to participate in the FTO exchange by Vnesheconombank and confirmed by the Ministry of Finance. It is anticipated that additional FTO claims will be reconciled and confirmed as eligible in time to participate in the FTO exchange.
The FTO exchange will regularise Russia’s relations with participating commercial trade creditors of the former Soviet Union. Holders of FTO Debt not reconciled in time to participate in the FTO exchange offer will be afforded an opportunity to participate in a subsequent FTO exchange offer to be made in 2003 on the same terms as the current exchange offer.
The exchange offer will remain open until 5 p. m., London time, on Friday, December 6, 2002. It is expected that the exchange offer will close on Wednesday, December 18, 2002.
Questions regarding the exchange offer should be directed to Citibank, N. A., the Exchange Agent for the offer, at:
5 Carmelite Street
London EC4 Y 0 PA
Tel. No. +44 20 7508 3867
Fax No. +44 20 7508 3866
Questions regarding the reconciliation of FTO Debt should be directed to Vnesheconombank, the Sub-Exchange Agent for the offer, at:
Academic Sakharov Avenue, 9
Moscow 107996 GS P-6
Tel. No. ++7 095 204 6327
Fax No. ++7 095 975 2120
J. P. Morgan Chase Bank, London branch, will be the Fiscal Agent for the 2010 Bonds and the 2030 Bonds.
NOT FOR RELEASE IN THE UNITED STATES. These materials are not an offer for sale of the securities in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act of 1933, as amended. The Russian Federation does not intend to register the securities in the United States or to conduct a public offering of securities in the United States.