On Novembr 05, 2002, the second issue of the bonds of the Joint Stock Company "Irkutsk Aviation Industrial Association" (The JSC "IAIA") for the total par value of 1.5 billion Roubles was completely floated.

The distinctive feature of the bonded debt in question is that its flotation was done simultaneously at two leading Russian trading platforms - the Moscow Interbank Currency Exchange (50 per cent) and the RTS Stock Exchange (50 per cent) by three underwriters - the NOMOS Bank, MDM-Bank, and Vneshtorgbank. The volume floated by each underwriter made 500 million Roubles at par of the value of the issue: 250 million Roubles at each trading platform.

The price of flotation is set at 99.0 per cent (ninety nine per cent) of par value by the Issuer, which makes 990.0 (nine hundred and ninety) Roubles per single bond. Effective profit yield of the bonds for redemption makes 18.54 per cent annual, effective profit yield by the first offer - 20.09 per cent annual.

The bonds of the A02 series are interest-bearing documentary non-convertible bonds to bearer with obligatory centralized deposition in the Non Profit "National Depository Center". The date of retirement of bonds - November 02, 2005. Conditions of issuance provide for 6 semi-annual coupon payments: the rate for the 1st and 2nd coupons will make 18.5 per cent annual, for the 3rd and 4th coupons - 17.0 per cent annual, the 5th and 6th - 16.0 per cent annual. The issuance of bonds is registered by the Federal Commission for the Securities Market of the Russian Federation on October, 01, 2002, State registration number 4-02-00040-A.

The conditions of the issuance also provide for the publication, by the Issuer, of irrevocable offers for premature redemption of bonds each 12 months. The first of such offers (date of execution - November 05, 2003, price of the execution - 99.5 per cent of the par value of bonds) was published on October 15, 2002, in the newspaper "Vedomosti".

All in all, 117 demands were satisfied by the underwrites in the course of flotation: 101 transactions were concluded in the Section of Securities Market of MICEX and 16 transaction - in the RTS Stock Exchange.

The bulk of funding drawn through the bonded debt is planned to be allocated for the restructuring of the present liabilities (substitution of the most expensive credits and loans) by the JSC "IAIA".