«KAMAZ -FINANCE» Ltd., a subsidiary of KAMAZ Inc., has finished floating the first funded loan valued 1,2 bln rubles at Moscow interbank exchange market on November 12, 2003.

NB: «KAMAZ -FINANCE» Ltd. was established in June 2003. Its aim is to attract foreign financing. The funded loan was issued as documentary interest-bearing non-convertible bonds with a three years maturity period. The bonds have 6 half- year warrants and there will be two offers after the first and the second year of circulation. Rate of the first two warrants will be fixed at the auction and the following rates will be ascertained by the issuer.

Though condition of the market is in general negative, there still has been excess of «KAMAZ — FINANACE» securities demand over supply. There were received 56 applications to the amount of 1, 258 rubles. About 20 banks and investment companies showed their interest in the Company’s securities. During the auction there was fixed a marginal interest rate for the first and second warrants as equal to 15,3 %. At the auction held earlier by one of raw materials supplying companies, the marginal rate has been fixed at 16%, so one can say that KAMAZ Inc. is highly attractive for investors.

"Zenith «Bank» OJSC and « Foreign Trade Bank» OJSC were the organizers of this funded loan, «Foreign Trade Bank» OJSC, «Lukoil» investment company and «Ak Bars» Bank acted as underwriters. Free circulation of securities at the secondary market will start approximately a month later after issue is registered. The loan will mainly provide for KAMAZ development and its current activities at quite profitable terms. Besides, the Company will be able to replace its loan portfolio and keep financing its investment project on development of a KAMAZ -6520 family of increased payload trucks.