A Board of Directors’ meeting has come to an end at Gazprom’s Headquarters. The Board of Directors heard the report on placing Gazprom’s A3 non-convertible interest-bearing documentary pay-to-bearer bonds with obligatory centralized custody.

The Board of Directors approved the Bond Issue Report and ordered to submit it for registration to the RF Federal Commission for the Securities Market.

The issue on holding a tender to select Gazprom’s auditor for 2004 will be considered at a Board of Directors’ meeting in absentia.

Reference:

On February 3, Gazprom successfully placed the A3 RUR 10 billion bonds with a RUR 1000 face value and a 3-year maturity. A 4% coupon yield is payable in arrears semi-annually.

The floatation price was determined on the Moscow Interbank Currency Exchange (MICEX) at 100.69% of the face value, which is 8% of effective annual yield.

At the same time, the minimum floatation price fixed in the Bond Issue Resolution, accounted for a 10.5% yield. Thus, the fund attraction cost was reduced 2.5% against the targeted one.

DIVISION OF RELATIONS WITH MASS MEDIA